insurance

Chair

Elon Musk

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/trumps-transition-team-proposes-changes-to-banking-oversight/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Trump’s Transition Team Proposes Changes to Banking Oversight</a> 
Donald Trump’s transition team plans to significantly reduce, consolidate, or even eliminate key regulatory bodies within the banking sector. Advisors from the newly established Department of Government Efficiency (<a href="https://en.coin-turk.com/dogecoin-miners-accumulate-doge-as-on-chain-data-points-to-another-price-rally/" data-wpel-link="internal" rel="noopener noreferrer nofollow">DOGE</a>) led by Elon Musk are evaluating the possibility of abolishing the Federal Deposit Insurance Corporation (FDIC).
<h2 style="text-align: justify" id="discussion-on-the-abolition-of-the-fdic">Discussion on the Abolition of the FDIC</h2>
Following role interviews for the FDIC and the Office of the Comptroller of the Currency (OCC), DOGE advisors proposed transferring deposit insurance responsibilities to the Treasury Department. However, such a change would require Congressional approval and could mark the first time in U.S. history that an existing agency is abolished.
Bank executives express optimism regarding Trump’s potential rollback of stringent capital requirements and consumer protection regulations. Nevertheless, some market analysts argue that FDIC-backed deposit insurance is essential. The OCC has particularly faced serious issues with <a href="https://en.coin-turk.com/state-street-global-advisors-and-galaxy-asset-management-announce-cryptocurrency-collaboration/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrency</a> firms collaborating with banks, and the recent move might be seen as favorable for the crypto sector.
<h2 style="text-align: justify" id="response-from-the-crypto-sector">Response from the Crypto Sector</h2>
During a speech at the New York Stock Exchange on December 12, Trump indicated significant plans for the <a href="https://en.coin-turk.com/binance-falls-coinbase-and-bybit-exchanges-rise/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto market</a>. In a brief interview with Jim Cramer, Trump stated:
<blockquote>
 “We will do something great with crypto because not only China but others are adopting crypto, and we want to be ahead.”
</blockquote>
The DOGE team is assessing the consolidation of the FDIC, OCC, Federal Reserve’s non-monetary functions, and the National Credit Union Administration (NCUA). Crypto leaders are calling for the removal of regulators behind Operation Choke Point 2.0, with prominent figures like Coinbase CEO Brian Armstrong supporting the dismissal of anti-crypto regulators from the Senate Banking Committee.
Additionally, crypto-friendly U.S. Representative French Hill has been elected as the chair of the Financial Services Committee, focusing on stablecoins and cryptocurrency regulations. Former FDIC Chair Sheila Bair expressed skepticism about the abolition of a bank regulator:
<blockquote>
 “We can simplify financial regulation a bit. However, achieving this is really hard. Banks may complain, but in the end, they prefer to maintain relationships with certain agencies. They like the current situation.”
</blockquote>
Some transition team members suggest maintaining just one primary banking regulator while allowing the others to continue non-regulatory functions. Although these proposals reflect Donald Trump’s desire to shake up federal oversight, experts indicate that such radical changes will encounter significant political and sectoral resistance. The abolition of the FDIC could lead to a comprehensive reshaping of regulations within the banking sector, necessitating Congressional approval and thorough assessments concerning financial stability and inter-sector relationships.
The post <a href="https://en.coin-turk.com/trumps-transition-team-proposes-changes-to-banking-oversight/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Trump’s Transition Team Proposes Changes to Banking Oversight</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.

Trump’s Transition Team Proposes Changes to Banking Oversight

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