Concerns Over Trump Family’s Cryptocurrency Involvement
TD Cowen, a prominent investment bank, has raised alarms about the potential consequences of the Trump family’s foray into the cryptocurrency sector, particularly concerning their anticipated stablecoin launch. According to a report from TheBlock, the bank’s Washington Research head, Jaret Seiberg, expressed concern that this involvement might provoke a backlash that could stall progress in U.S. cryptocurrency regulations.
Political Risks and Regulatory Challenges
Despite ongoing efforts by lawmakers to advance the legal framework surrounding cryptocurrency, there is growing political unease. Seiberg stated in his Monday report,
“Political threats could escalate sufficiently to disrupt the reform process within the crypto industry. We do not perceive an imminent complete breakdown of the sector due to these risks at the moment, but there is certainly an upward trend in political hazards that investors should closely monitor.”
Currently, U.S. legislative bodies and regulatory institutions are actively developing guidelines for cryptocurrencies. The Securities and Exchange Commission (SEC) has recently dismissed several lawsuits concerning crypto, and legislators are exploring regulatory parameters for stablecoins and overall market structures. Recently appointed SEC acting Chairman Mark Uyeda suggested that exemptions might be forthcoming for crypto trading platforms along with traditional exchanges desiring to engage in tokenized securities trades.
Impact of Trump Family’s Crypto Endeavors
However, Seiberg cautioned that these advancements might be jeopardized due to the contentious nature of the Trump family’s crypto endeavors. He remarked,
“Our worries are increasing that the business actions associated with the Trump family, in conjunction with government measures, could incite significant backlash and consequently derail proactive governmental initiatives.”
In addition, Seiberg highlighted apprehensions regarding shifts in the Trump administration’s anti-money laundering strategies, specifically noting the lifted sanctions on the crypto mixer Tornado Cash and a noticeable dip in the Justice Department’s prosecution of crypto-related money laundering offenses.
