With a new administration in the White House, the financial services sector in the US is entering a transformative stage, tempered by concerns about the president’s own crypto projects.
With his finger on the pulse of public opinion, Donald Trump and his wife Melania have not been slow to launch their own meme coins. His fans have been watching them closely, many not realising there is no real value attributed to these coins.
The only coin which the crypto industry can agree on being a store of value is bitcoin. Most investors look to what utility the crypto, or underlying blockchain, is adding to give value as the basis for investing in coins outside of bitcoin. Solana and Ethereum, for example, have legitimate underlying blockchains adding real value to various enterprise and consumer use cases such as payments and smart contracts. The meme coins that don’t carry any utility have often been linked to ‘pump and dump’ schemes in the past.
While the ownership or commercial structure of these coins is not overly clear, many investors perceive the coins having some interest in the Trump administration, which is not the case. Owning Trump coin or Melania coin, is no different than owning another meme coin like PEPE, SHIB, or other meme coins we’ve seen rise and fall in popularity.
Not only is there serious risk to consumers losing money that invest in Trump or Melania coin, but this also carries reputational risk for crypto in the US under the latest administration.
Bulls on the loose
Currently the atmosphere is euphoric, with much enthusiasm in regulated US financial institutions around incorporating crypto as an asset class. Even Bank of America has expressed interest in adopting crypto payments.
The intention of Donald Trump administration to establish the US as global leader in cryptocurrency has been clear. Promises to create a National Bitcoin Reserve, coupled with opposition to a Chinese-style central bank digital currency, signal strong commitment to digital asset innovation. The resignation of Gary Gensler, chair of the Securities and Exchange Commission (SEC) — an outspoken critic of digital assets — and appointment of Silicon Valley veteran David Sacks as the AI and crypto czar, mark a pivotal shift in regulatory outlook.
This is an exciting time for digital assets. For years, regulatory overreach — like the SEC’s SAB 121 rule — has stifled progress. Introduced in March 2022, it required banks to list client-owned digital assets on their balance sheets as liabilities — inconsistent with how other custodial assets, including gold, are treated. This deterred many from adopting in-house digital asset solutions. Potential revision by the current administration could enable banks to safely and efficiently offer digital asset services.
The rule created unnecessary friction for financial innovators. Unlike traditional assets, digital assets have been treated with undue scepticism, making it harder to meet growing consumer demand. The recent repeal of SAB 121 could unlock immense potential for the financial sector.
The US government’s proposed Bitcoin Reserve represents a watershed moment for cryptocurrency. Combined with Bitcoin ETF launches from BlackRock and Fidelity, the credibility of bitcoin and other digital assets as a legitimate asset class is solidifying. For banks and credit unions, this opens the door to unprecedented opportunities.
Regulators like the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation have made it challenging for banks to offer digital assets, in stark contrast to the more permissive National Credit Union Administration (NCUA), which encourages credit unions to offer cryptocurrency solutions to members. Credit unions such as WeStreet, Frankenmuth and United Financial Credit Union are already live with crypto offerings, positioning themselves as market innovators.
Credit unions are leading the way by recognising growing consumer demand for cryptocurrency. They’re setting a strong example for how retail financial institutions can integrate digital assets into their offerings.
Digital demand
As demand for digital assets grows, retail-focused financial institutions must act fast to remain competitive. Institutions that embrace this shift will lead the next wave of innovation in financial services.
Third-party investment platforms Robinhood and WeBull are already capturing market share by integrating digital asset offerings into their apps. Even legacy institutions like Fidelity and Schwab are offering cryptocurrency investments, further cementing this asset class’s role in the future of finance. Retail financial institutions risk losing relevance — and deposits — if they don’t act now.
The shift toward digital assets, over the next four years, will present an opportunity to attract the tech-savvy next generation, looking for modern investment options. This is a moment when wealth managers can become industry leaders, differentiating themselves from competitors and establish stronger relationships with this rising demographic.
Kian Sarreshteh, CEO of InvestiFi
