insurance

Donald Trump

Chair

<p class="is-style-lead">The Wall Street Journal reported that incoming President Donald Trump’s transition team is exploring plans to alter or potentially eliminate the Federal Deposit Insurance Corporation.&nbsp;</p>
<p>According to sources <a href="https://www.wsj.com/finance/regulation/trump-advisers-bank-regulations-fdic-efa761dc" target="_blank" rel="noopener noreferrer nofollow">that spoke</a> to the WSJ, Trump’s advisers have questioned candidates for regulatory positions on the feasibility of merging the <a href="https://crypto.news/tag/FDIC/" target="_blank" rel="noopener noreferrer nofollow">FDIC</a> with other agencies or absorbing its functions into the Treasury Department.</p>
<p>These discussions are part of broader efforts under Trump’s <a href="https://crypto.news/washington-goes-doge-as-musk-pushes-for-a-government/" target="_blank" rel="noopener noreferrer nofollow">proposed</a> Department of Government Efficiency to <a href="https://crypto.news/elon-musk-inspired-government-efficiency-coin-33000/" target="_blank" rel="noopener noreferrer nofollow">shrink federal oversight</a> and streamline financial regulation.&nbsp;</p>
<p>According to the WSJ, the talks also extend to merging or restructuring the FDIC, Office of the Comptroller of the Currency, and parts of the Federal Reserve.&nbsp;</p>
<p>These moves would require congressional approval and face political and industry resistance. Former FDIC Chair Sheila Bair told the WSJ that banks often rely on their relationships with specific regulators and would likely oppose the disruption of current frameworks.&nbsp;</p>
<p>Trump’s campaign and vision align with Republican calls to <a href="https://crypto.news/why-is-donald-trump-calling-on-the-government-not-to-sell-bitcoin/" target="_blank" rel="noopener noreferrer nofollow">reduce oversight</a>. The proposed changes primarily aim to streamline regulatory functions and reduce restrictions on financial institutions.</p>
<p>You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/crytocoinminer-and-justin-sun-how-cloud-mining-drives-crypto-success/"> CrytocoinMiner and Justin Sun: How cloud mining drives crypto success </a></p>
<h2 class="wp-block-heading" id="what-does-this-report-mean-for-the-crypto-industry">What does this report mean for the crypto industry?</h2>
<p>The potential downsizing of the FDIC <a href="https://crypto.news/the-man-behind-trumps-bold-crypto-and-ai-move/" target="_blank" rel="noopener noreferrer nofollow">could be a turning point</a> for the crypto sector. It would reduce federal oversight and accelerate the integration of crypto into mainstream finance. Fewer regulatory bodies may lead to a more cohesive framework for crypto exchanges and blockchain projects.</p>
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   <p lang="en" dir="ltr">BREAKING: President-elect Donald Trump is looking for ways to potentially eliminate top bank regulators including the FDIC, per WSJ.<br><br>The Department of Government Efficiency, <a href="https://twitter.com/DOGE?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@DOGE</a>, has reportedly asked if the FDIC could be abolished. <a rel="noopener noreferrer nofollow" href="https://t.co/G4ZPG8vBu9" target="_blank">pic.twitter.com/G4ZPG8vBu9</a></p>— The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1867361922255139235?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 13, 2024</a>
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<p>The assumption with a report like this is that Trump’s broader deregulatory agenda could create an environment with <a href="https://crypto.news/gensler-to-resign-sec-chair-what-next-under-trump/" target="_blank" rel="noopener noreferrer nofollow">fewer compliance hurdles</a> for the crypto space. As traditional financial institutions face reduced oversight, the crypto industry may seize the opportunity to fill gaps in <a href="https://crypto.news/tag/DeFi" target="_blank" rel="noopener noreferrer nofollow">decentralized finance</a> and blockchain-based solutions.</p>
<p>The proposed changes could also influence consumer perceptions of financial security. If public trust in traditional banks wavers due to reduced deposit insurance protections, crypto proponents might highlight <a href="https://crypto.news/trumps-2024-plans-for-a-crypto-revolution-heres-what-it-means-for-bitcoin/" target="_blank" rel="noopener noreferrer nofollow">blockchain’s transparency</a> and security as viable alternatives.&nbsp;</p>
<p>This could spur increased adoption of <a href="https://crypto.news/tag/stablecoin/" target="_blank" rel="noopener noreferrer nofollow">stablecoins</a> and other digital assets as decentralized hedges against banking risks.</p>
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Trump considering FDIC rebuild, raising crypto industry hopes

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