Banks Rush to Crypto as SEC and Trump Administration Embrace Digital Assets

The U.S. Securities and Exchange Commission's (SEC) new regulations and rumors of initial public offerings (IPOs) for crypto exchanges have sparked increased interest from banks in the crypto landscape. This shift in sentiment comes as the Trump administration has pledged to adopt a more pro-crypto stance, which could transform the overall crypto and digital asset landscape.

Major banks, including Morgan Stanley, Bank of America, and Royal Bank of Canada, have shown growing interest in crypto-based clients, according to a Bloomberg report. This interest is fueled by the potential for crypto exchanges like Bullish and Gemini to go public through IPOs, as well as stablecoin issuers Circle and Gemini exploring similar expansion strategies.

The SEC, under the leadership of Mark T. Uyeda, is expected to develop regulatory policies for crypto that will involve input from multiple divisions and offices. This move aligns with the Trump administration's goal of making the U.S. the "crypto capital of the planet." The looser and more flexible regulations could help synchronize the crypto landscape with the broader commercial environment, fostering a more rewarding crypto ecosystem.