Wall Street Eyes Crypto Expansion as Trump Administration Takes Over
As the Trump administration takes charge in Washington, major global banks are signaling optimism about expanding their crypto operations, buoyed by a pro-crypto White House and regulatory shakeups like SEC Chair Gary Gensler’s departure.
Bank of America CEO Brian Moynihan weighed in on the evolving landscape in a Tuesday interview with CNBC. When asked about the bank’s stance on crypto under the new administration, Moynihan emphasized the importance of regulatory clarity.
“If the rules come in and make it a real thing you can actually do business with, you will find the banking system will come in hard on the transactional side of it because we have to,” he told Squawk Box host Andrew Ross Sorkin.
Moynihan also noted that Bank of America has been preparing for this shift, highlighting the bank’s portfolio of hundreds of crypto-related patents. However, he stopped short of fully endorsing digital currencies as alternatives to traditional money. “We need a strong U.S. dollar. It is good for our country,” he said, framing Bitcoin and other cryptocurrencies as complementary options rather than replacements.
Billionaire investor and Bridgewater Associates founder Ray Dalio echoed similar sentiments in a separate interview. While recognizing Bitcoin’s potential as a hedge against economic risk, Dalio remained skeptical about its viability as a central bank reserve asset.
“At $14,000, no, I wouldn’t,” he said when asked about allocating 10% of his portfolio to Bitcoin. “I don’t see Bitcoin as something governments would adopt right now, though that could change if strategic Bitcoin reserves become a reality.”
Meanwhile, BNY Mellon CEO Robin Vince expressed long-term optimism for crypto’s role in finance. Speaking to Yahoo Finance, Vince highlighted the bank’s investments in digital asset custody and blockchain-based smart contracts.
“Digital assets represent a new, interesting, innovative technology, and we’ve been investing in custody capabilities and exploring smart contracts,” Vince said.
With the Trump administration signaling a more crypto-friendly regulatory environment, the next 12 to 24 months could be pivotal for digital asset adoption in traditional banking.
Featured image from: zycrypto.com