- Bessent plans to eliminate outdated rules limiting blockchain and stablecoin use.
- New capital standards may ease lending barriers for fintech and small banks.
- AML reform will let banks focus on real risks, not low-threat activities.
U.S. Treasury Secretary Scott Bessent announced a full review of regulations affecting blockchain, stablecoins, and payment innovation. His remarks came during a speech at the American Bankers Association’s Washington Summit, where he outlined the Trump administration’s deregulatory push for fintech and financial markets.
According to a post by Crypto Ark, Bessent stated that the Treasury will closely examine rules that may be restricting growth in blockchain-based systems. He said, “We will take a close look at regulatory impediments to blockchain, stablecoins, and new payment systems,” emphasizing the administration’s support for modernization in finance.
Treasury Eyes Crypto Reforms Under Deregulatory Framework
He also highlighted that outdated oversight has left smaller banks disproportionately burdened, especially those with limited access to compliance infrastructure. Bessent argued that many community institutions would benefit from exemptions under a risk-based approach, citing specific cases where entire regulations could be lifted.
Bessent stressed that regulatory reform should allow smaller banks to operate on fairer terms without sacrificing financial stability. He pointed to plans for “tailoring” supervisory actions based on the actual risks posed by each institution, not just broad classifications.
New Capital and Liquidity Standards May Benefit Fintech
Bessent then shifted focus to capital and liquidity requirements, calling current frameworks overly restrictive for lending. He pointed out that more than one-quarter of bank balance sheets now sit in reserves or treasuries, limiting funds for productive uses like loans or fintech investment.
He made clear that global standards like those from the Basel Committee should not dictate domestic capital rules. Instead, U.S. regulators should conduct their risk assessments to design flexible frameworks, especially for mortgages and assets vital to community banks.
AML and Stablecoin Oversight Also on Treasury’s Radar
Bessent also turned to anti-money laundering oversight, outlining plans to update how financial institutions prioritize risk. He proposed changes allowing banks to deprioritize low-risk activities and instead direct resources to national security concerns, including financial crime and terrorist financing.
Wrapping up, he addressed the importance of clarity in supervisory definitions and practices. In his words, “Defining ‘unsafe and unsound’ by rule, using objective measures, is a crucial step.” His remarks suggest the Treasury is preparing structural changes that could significantly impact crypto, banking, and regulatory compliance.
