Leading financial industry groups have called on the Trump administration to reverse federal policies that they claim have limited US banks’ involvement in digital asset markets. These groups argue that excessive regulation is hindering American leadership in financial innovation. In a letter addressed to David Sacks, Special Advisor for Artificial Intelligence and Crypto and chair of the President’s Working Group on Digital Asset Markets, the organizations urged for the immediate revision or rescission of policies imposed by federal banking agencies during the previous administration.
The letter emphasizes that these policies have created significant obstacles for banks to engage in digital asset-related activities, despite their legal authority to do so. The groups also stressed the importance of involving key regulators such as the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) in the efforts to reshape the US digital asset framework.
According to the financial organizations, the restrictive policies have resulted in US banks falling behind their international competitors in the digital asset sector. They specifically highlighted several regulatory actions implemented under the Biden administration, including the Federal Reserve’s SR 22-6 policy on crypto-asset engagement, the OCC’s Interpretive Letter 1179 restricting crypto custody, the FDIC’s FIL-16-2022 notification requirement for crypto activities, and joint agency statements warning against crypto-asset risks.
The letter argues that maintaining the status quo will prevent the United States from achieving a leadership position in digital assets and financial technology. To advance this goal, the banking groups propose rolling back the Biden-era restrictions, which they believe have created uncertainty and discouraged US financial institutions from participating in the sector. They intend to provide detailed regulatory and legislative proposals to help US banks regain competitiveness in the global digital asset economy and have requested a meeting with Sacks and the working group to discuss the next steps.
In addition, the groups urge Sacks to expand the President’s Working Group to include banking regulators, as they have significant influence over financial markets. Despite their oversight of banks involved in digital assets, the FDIC, OCC, and Federal Reserve are currently not part of the task force. The letter cites recent remarks by FDIC Acting Chairman Travis Hill, who acknowledged that the agency’s approach to crypto had created the perception that the FDIC was not open to blockchain and digital asset-related activities.
Apart from banking regulators, the groups suggest that the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), both divisions of the Treasury Department, should also be included in digital asset discussions due to their role in regulating financial crime and sanctions compliance.
