Trump is reportedly considering merging the Federal Deposit Insurance Corporation (FDIC) with the Office of the Comptroller of the Currency (OCC) to weaken bank regulatory power.

The Trump administration has reported plans to merge the FDIC and OCC, weaken banking regulatory powers, strengthen the government's control over the financial system, or bring significant changes to the TradFi and cryptocurrency markets. (Synopsis: Musk sits on the US presidential throne to "replace Trump": what the cover of Time magazine wants to reveal) (Background supplement: Trump confirms call Putin: We all have Consensus to end the Ukraine-Russia war, US security advisers to discuss the end of the war at this week's Munich meeting) US President Donald Trump's administration is rumored to be considering merging the Federal Deposit Insurance (FDIC) and the Office of the Comptroller of the Currency (OCC) in an attempt to reduce the powers of banking regulators without the consent of Congress. Further strengthen the government's direct control over the financial system. This move could not only affect traditional financial institutions, but also have a profound impact on the cryptocurrency market. What is FDIC and OCC? Federal Deposit Insurance (FDIC) Founded in 1933, the FDIC is responsible for insuring bank deposits and ensuring that depositors can get some of their money back in the event of a bank failure. The FDIC is also responsible for supervising the operations of specific banks to maintain the stability of the financial system. It is mainly financed by insurance premiums paid by banks, rather than directly funded by the government. Office of the Comptroller of the Currency (OCC) The OCC, part of the U.S. Department of the Treasury, oversees national banks and federal savings agencies, ensures compliance with regulations for the Financial Institution, and maintains the integrity of the banking system. The OCC also has the authority to issue banking licenses and is an important institution in the U.S. financial regulatory system. Plan Details and Possible Impact According to people familiar with the matter, Trump administration officials are discussing merging the regulatory functions of the FDIC into the OCC and eventually bringing it under the jurisdiction of the Treasury Department. While the FDIC may retain the function of deposit insurance, banking supervision will be centralized within the Treasury, significantly changing the existing regulatory framework. The plan includes having the same official head both the FDIC and the OCC, and even considering the post of Under Secretary for Domestic Finance at the Treasury Department to further strengthen the government's direct control over the banking sector. If this happens, it will weaken the independence of regulators and may raise concerns about the ability of financial supervision. Financial Industry and Congressional Response The banking industry generally supports less regulation, arguing that onerous regulations limit innovation and business growth. However, some banks are also concerned that weakened regulation could affect market confidence in the US financial system, especially after the failure of several banks in 2023, deposit insurance and risk regulation have become more important. Despite the Trump administration's attempts to bypass Congress to push for reforms, the FDIC and OCC leadership appointments still require Senate confirmation. Even if Republicans control the House and Senate, Democrats may not support such large-scale reforms, and the promotion of this plan will inevitably face political resistance. Potential Impact on Cryptocurrency Regulation FDIC Links with Cryptocurrency In the past, the FDIC has taken strict scrutiny and obstruction measures against banks engaging in cryptocurrency business, including delaying audits, requesting additional information, and directing the suspension of related operations, which has led most banks to eventually abandon the attempt. With Vice Chairman Travis Hill making public 175 regulatory documents, the FDIC's encryption regulatory policy could usher in major overhauls in the future. Further reading: Federal Deposit Insurance (FDIC) to Modify and Remove "Encryption Discrimination Policy", Acting Chairman: Banks Should Not Be Prevented from Accessing the Block Chain OCC's Role in the Encryption Market The OCC also plays a key role in the encryption market, having passed through 1179 in the past The administrative letter restricts Bank Negara's participation in cryptocurrency custody and stablecoin business. With encryption-friendly Rodney Hood as acting director, the OCC expects to lift these restrictions and open up more encryption space for the banking industry. Read more: The new commissioner of the U.S. Office of the Comptroller of the Currency (OCC) is also a friendly encryption, and it is rumored that the ban on banks' participation in Virtual Money will be revoked Related Stories Musk sits on the US presidential throne to "replace Trump": What does the cover of Time magazine want to reveal Trump confirms the call Putin: We all have Consensus to end the Ukrainian-Russian war, U.S. security advisers met in Munich this week to discuss the final battle BTC pin $94700 after V turn, Trump announced that all imported steel, aluminum will be subject to 25% tariffs from the 10th (Trump is considering merging the Federal Deposit Insurance (FDIC) and the Office of the Comptroller of the Currency (OCC), Weakening the power of bank supervision" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Block Chain News Media".