"Assessing Opinions": Bank of America and JPMorgan leaders discuss potential return of Trump in politics
In the ever-evolving world of banking, the current administration under President Trump has been making waves with its approach to regulation, particularly in regards to digital assets and blockchain technology.
At recent investor conferences, bank executives have expressed a sense of relief and optimism, as the regulatory environment appears to be becoming more predictable and supportive. The administration has put an end to prior restrictive regulatory efforts, such as Operation Choke Point 2.0, and is actively promoting a framework to accommodate digital asset banking activities.
One of the most significant developments in this area is the signing of the GENIUS Act in July 2025. This legislation marks the first federal regulatory framework for stablecoins, signalling a strong commitment to digital financial innovation and modernization of payment infrastructure. Regulators are encouraged to relaunch crypto innovation efforts, clarify permissible bank activities related to custody, tokenization, and stablecoin issuance, and ensure transparent banking charter procedures.
Wells Fargo CFO Mike Santomassimo, among others, has noted a change in the regulatory tone. The emphasis on a sound, predictable framework that embraces blockchain could facilitate broader customer service offerings and ease access to digital asset markets.
However, it's not just digital assets that are seeing regulatory updates. The Securities and Exchange Commission (SEC) has extended certain compliance deadlines for broker-dealer rules and is considering legislative proposals to increase private fund access. These changes, while relevant to the industry, do not directly contradict the relaxed stance on bank digital asset engagement under the Trump administration.
In the midst of these changes, the White House has nominated Jonathan Gould, an agency veteran, to lead the Office of the Comptroller of the Currency. The industry is also showing interest in increasing transparency in the Federal Reserve's stress testing process.
Bank executives are optimistic about the supervisory approach that's likely to result, but want balanced, coherent regulation that allows banks to support the economy without conflicting with safety and soundness. JPMorgan Chase Chief Operating Officer Jennifer Piepszak described the current situation as a "shock and awe moment".
As the administration continues to shape the regulatory landscape, bank executives are keeping a close eye on developments, particularly the finalization of the Basel III rule, which is crucial for balance sheet management. Despite some frustrations expressed by executives like Wells Fargo CEO Charlie Scharf, the overall sentiment remains positive, with the potential for significant growth in banking services tied to digital assets.
In conclusion, under the Trump administration in 2025, bank regulation is trending towards modernization and deregulation, particularly in relation to digital assets, with clear executive support for stablecoins and blockchain innovation. This shift is widely viewed as fostering a more favorable regulatory environment for the banking industry.
- The Trump administration's approach to regulation, specifically regarding digital assets and blockchain technology, has instigated a shift in the banking industry towards a more favorable regulatory environment, attracting optimism from bank executives investing in these sectors.
- Beyond digital assets, the Securities and Exchange Commission (SEC) has extended compliance deadlines for broker-dealer rules and is considering proposals to increase private fund access, playing a role in the broader business and general-news landscape of financial regulations.
