Optimism for Cryptocurrencies: US Banks Cautiously Weigh Risks

At this year's Reuters NEXT conference in New York, leading US bankers expressed caution regarding digital currencies, even though the announced easing of regulations under Donald Trump could pave the way for banks in the area of crypto-assets. Despite Trump's promise to support the crypto industry as president and to end the stringent measures by the Biden administration against the sector, banks are unlikely to rush into the volatile markets. Goldman Sachs CEO, David Solomon, emphasized that clear regulatory guidance is necessary to consider any dealings in top cryptocurrencies like Bitcoin and Ethereum. BNY Mellon has already begun to custody crypto-assets for some exchange-traded products, as explained by CEO Robin Vince. However, Vince stressed that all new initiatives must be carefully reviewed and tested, given that the market has already experienced some volatile phases. With Donald Trump entering the White House, the crypto industry hopes for the promotion of digital assets through ambitious measures, including the rollback of SEC accounting guidelines. The appointment of David Sacks as "Crypto Czar" and the nomination of Paul Atkins as SEC chair amplify these expectations. However, it remains unclear how quickly regulatory relief will be implemented, particularly since the current Fed cop, Michael Barr, who is skeptical of cryptocurrencies, intends to remain in office until 2026. In light of recent issues in the crypto sector that contributed to the collapse of Silvergate and Signature Bank, the future remains uncertain.