Dismiss the SEC Chairman, withdraw lawsuits in the cryptocurrency sector, relax bank scrutiny... these may be the first shots of "Trump 2.0"!

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

Trump previously stated, "I hope to relax regulations to allow American businesses to thrive." On November 7, according to The Wall Street Journal, the Trump administration plans to adjust the existing financial regulatory system, including the dismissal of Securities and Exchange Commission (SEC) Chairman Gary Gensler, dropping lawsuits against cryptocurrency companies, and easing scrutiny on banks. However, analysts believe that the extent of the adjustments may not be that significant.

Executives are betting that Trump will relax requirements for banks to increase capital buffers and strengthen consumer protections, and are expected to adopt a more favorable stance on cryptocurrencies, bank mergers, and potentially competing new payment alternatives.

Analysts at Huatai Securities also believe that deregulation is one of Trump's most important agendas. They expect that after taking office, Trump will quickly push the deregulation agenda by reversing some of the regulatory policies from the Biden era.

The "First Fire" of His Term: Dismiss SEC Chairman and Drop Cryptocurrency Lawsuits

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

Gary Gensler is known for his strict regulation of Wall Street, with policies that include requiring companies to disclose more information related to climate risks and imposing stringent regulations on the cryptocurrency industry. These policies have caused dissatisfaction among Wall Street executives.

The Trump administration plans to revoke environmental, social, and corporate governance-related measures, and adopt a more lenient attitude towards the cryptocurrency industry, potentially dropping lawsuits against cryptocurrency exchanges like Binance and Coinbase.

Reports indicate that one of the potential candidates considered by Trump's allies to replace Gensler is Dan Gallagher, who is currently the Chief Legal Officer at Robinhood and previously served as a commissioner at the SEC.

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

Easing Bank Scrutiny

Bank executives hope that the Trump administration will further relax bank capital rules, allowing for more transactions between banks. According to informed 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 ease control over the Federal Deposit Insurance Corporation (FDIC), which had previously proposed strengthening scrutiny of transactions by banks of certain sizes. Analysts believe that FDIC Republican Vice Chairman Travis Hill may become the new head, as he has expressed opposition to the proposal.

Additionally, banks also expect that a regulation limiting credit card late fees may be repealed or weakened, although this regulation has not yet been implemented and is currently under court scrutiny. In September, Trump proposed temporarily capping credit card interest rates at 10%. Currently, Trump's allies have begun preparations to end the U.S. government's control over Fannie Mae and Freddie Mac mortgage financing companies The report also stated that the Trump administration will quickly adjust the leadership of the Consumer Financial Protection Bureau (CFPB), which has become a thorn in the side of many financial institutions under the leadership of current director Rohit Chopra. The Trump administration may weaken or eliminate some of the stricter consumer protection measures implemented by Chopra.

However, he may retain those measures that align with his and elected Vice President JD Vance's populist tendencies