Donald Trump will confirm his intention to halt further financial regulation in the US until “significant growth” occurs.
Trump Slams ‘Record-Breaking Pace’
In his forthcoming economic speech in Detroit later today, the Republican nominee will criticize the Obama administration’s “record-breaking pace of new regulations, tax increases, restrictions on private-energy production, and one-sided trade deals.”
He will say these policies have been detrimental to the former industrial heartland of the northern US, Bloomberg reports.
At face value, a freeze on regulation appears to be a boon for cryptocurrency businesses in the US market, but Trump has hitherto been quiet on the fate of disruptive fintech in his potential administration. The Bitcoin community has traditionally positioned itself against Trump’s policies, combating such moves as blocking remittances to Mexico.
Nonetheless, the attractive nature of breathing space for small businesses in troubled regions such as Detroit will likely prove popular, Bloomberg noting Trump will couple the announcement with a plan to reduce inheritance tax.
“Every policy that has failed Detroit has been fully supported by Hillary Clinton. The one common feature of every Hillary Clinton idea is that it punishes you from working and doing business in the United States,” he will say.
Better for Whom?
Financial regulation has indeed come thick and fast in the US in recent years, with Bitcoin enterprise in particular coming up against complex and often expensive procedures in order to be able to do business.
In addition, different state laws mean that umbrella companies such as exchanges have had to negotiate a patchwork legislative environment in order to be able to serve customers throughout the country. According to the Digital Chamber of Commerce, here’s a list of states that have only recently signed their own cryptocurrency-related legislation into law:
- Georgia: HB 811, an update to banking regulations;
- North Carolina: HB 289, North Carolina Money Transmission Act;
- New Hampshire: HB 356, Establishing a Commission to Study Cryptocurrency Regulation;
- New Mexico: HB 250, Uniform Money Services Act;
- South Carolina: H 4554, South Carolina Anti-Money Laundering Act;
According to Trump, regulators “need to hit the pause buttons on these regulations so our businesses can reinvest in the economy.”
However, it is the smaller banking sector which is set to profit first and foremost from any relaxation. Lesser institutions currently having to comply with the 2010 Dodd-Frank legislation for big banks could welcome Trump’s plan to undo that law in particular.
Trump’s financial backers are keenly watching his rhetoric. A more free-ranging regulatory environment would provide windows of opportunity for profit, but whether this would translate into profit for the richer or poorer ends of the business spectrum remains to be seen.
“[Trump should] lay out a plan to lower corporate taxes, eliminate federal bureaucracy costs by 10 percent or more, end all corporate welfare programs, convert welfare programs to work programs and dramatically reduce all of the silly federal rules the current administration has put in place,” investor Doug Deason said of the plans.
What do you think about Trump’s financial legislation rhetoric and its potential for cryptocurrency business support in the US? Let us know in the comments section below!
Images courtesy of kpmg.co.za, airbitz.co, blogs.reuters.com
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