Source: Wall Street See

With the arrival of Trump 2.0, Wall Street is about to face a regulatory storm.

Trump previously stated, 'I hope to relax regulations and let American businesses flourish.' According to The Wall Street Journal on November 7, the Trump administration plans to adjust the existing financial regulatory system, including dismissing Gary Gensler, chairman of the Securities and Exchange Commission (SEC), withdrawing lawsuits against crypto companies, and relaxing scrutiny of banks. However, analysts believe that the adjustments may not be as significant.

Executives are betting that Trump will relax requirements for banks to increase capital buffers and strengthen consumer protection, expecting a more friendly attitude towards topics such as cryptocurrencies, bank mergers, and new payment alternatives that may compete with banks.

HTSC analysts also believe deregulation is one of Trump's top agendas. They expect Trump to quickly advance the deregulatory agenda through means such as reversing some of the regulatory policies from the Biden era soon after taking office.

The 'first fire' for the incoming SEC chairman, revoking lawsuits in the cryptocurrency industry.

Trump claims that he will dismiss SEC Chairman Gary Gensler on his first day in office.

Gary Gensler is known for his strict regulation of Wall Street, his policies include requiring companies to disclose more information related to climate risks, and taking strict regulatory measures on the cryptos industry. These policies have caused dissatisfaction among Wall Street executives.

The Trump administration plans to repeal environmental, social, and corporate governance-related measures, and take a more lenient attitude towards the cryptos industry, potentially reversing lawsuits against crypto exchanges such as Binance and Coinbase.

According to reports, one of the potential candidates considered to replace Gensler by Trump's allies is Dan Gallagher, the current Chief Legal Officer of Robinhood and a former commissioner of the United States Securities and Exchange Commission.

Other mentioned candidates include: senior legal advisor at Willkie Farr & Gallagher, former chairman of the Commodity Futures Trading Commission J. Christopher Giancarlo, and partner at Sullivan & Cromwell Dalia Blass.

Relaxing Bank Reviews

Bank executives hope that the Trump administration can further relax bank capital rules, allowing more trading between banks. According to sources cited by the Wall Street Journal, the Trump administration may take a more lenient stance on commercial real estate loans held by banks.

At the same time, the Trump administration is preparing to relax control over the Federal Deposit Insurance Corporation (FDIC). Previously, the agency proposed to strengthen the review of certain scale bank transactions. Analysts believe that the Republican Vice Chairman of the FDIC, Travis Hill, may become the new head, as he has expressed opposition to this proposal.

In addition, banks also expect a regulation restricting credit card overdue fees to be abolished or weakened. However, this regulation has not yet been implemented and is currently facing judicial scrutiny. In September, Trump proposed temporarily limiting credit card rates to 10%. Currently, Trump's allies have begun preparations to end the government's control over Fannie Mae and Freddie Mac, mortgage financing companies in the USA.

The report also mentioned that the Trump administration will quickly adjust the leadership of the Consumer Financial Protection Bureau (CFPB). Under the leadership of the current director Rohit Chopra, the CFPB has become a thorn in the side of many financial institutions. The Trump administration may weaken or abolish some of the stricter consumer protection measures implemented by Chopra.

However, he may retain measures that align with his and Vice President-elect JD Vance's populist tendencies.

Editor / jayden