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TRUMP ADMINISTRATION SPURS CREDIT UNIONS’ RETURN TO CRYPTOCURRENCY
DALLAS—The Trump Administration is bringing more credit unions back to offering cryptocurrency, says Bank Social, which offers advice to CUs considering stepping into this space.
The return to offering the service by more credit unions follows a sharp decline in cooperatives offering crypto services to members following the collapse of FTX in late 2022 and the sudden departure of NYDIG within the CU industry not long afterward.
Becky Reed, COO of crypto platform Bank Social, said the two primary reasons credit unions are coming back is the Trump Administration’s pro-crypto agenda and its emphasis on deregulation.
“The last six months we have seen interest begin to gain ground in digital assets—not just for investing but for payments, fractional lending and more,” said Reed.
GlobalData banking analyst Harry Swain said FIs could face fewer crypto regulatory hurdles under the Trump Administration.
“As you’ll, recall back in 2022 there was quite a bit of interest in cryptocurrency among credit unions, and there were some folks in the credit union space offering a crypto wallets, including us,” Reed said. “And then, FTX happened, and everyone kind of scattered to the wind.”
What also left a bad taste in the mouths of credit unions regarding digital currency is crypto platform NYDIG backing out of its agreements with credit unions in late 2023—forcing many members to sell their cryptocurrency—some at a loss—damaging member relationships with CUs that had been working with NYDIG.
Non-Custodial Crypto Wallet
Bank Social offers a non-custodial crypto wallet, where consumers control their digital money, not the crypto platform, owning their currency from day one.
“Credit unions were really starting to see the use cases for crypto. In fact, when I would speak at meetings I would ask people, just like I did in ’22 and ’23, how many people in the room felt like crypto was a scam. In ’22 and ’23, a third to half the room would raise their hands. Now, no one is raising their hand,” Reed said. “People are starting to understand that crypto is not just about speculative investing, but there are real use cases.”
Reed pointed to the momentum that has been building for cryptocurrency, noting that an a16Z study on the state of crypto in 2024 shows that in the second quarter of 2024, dollars in stablecoin transactions exceeded total Visa dollars.
“In the same period, Visa had more transactions. But, the transaction dollars are smaller,” Reed said. “The dollars in crypto transactions are massive.”
Reed said to expect crypto to lead to market disruption this year.
“I believe the theme song for 2025 is going to be payments, and of course cryptocurrency and stablecoins,” Reed said. “With the Trump Administration there’s going to be a more bullish approach to crypto adoption, because, as you know, the FDIC has come out and said you don’t want to play in this space unless you get our permission.”
Reed pointed out that credit unions have taken a wait-and-see approach, adding that NCUA has said to do what’s best for members, making sure the CU is doing its due diligence.
“The message to credit unions is don’t be afraid to test, try, pilot,” she said.
Reed asserted that every candidate from the November elections that had a pro-crypto stance was elected.
“That speaks about what is actually happening on the ground,” Reed said. “Here at Bank Social, we already started to see more interest in crypto among credit unions before the election.”
Bullish Prediction
Reed explained that Bank Social had about 25 credit unions in its pipeline when the FTX collapse happened, and only about five moved forward afterward.
“Today, several dozens of credit unions are interested,” Reed said. “We are getting calls from credit unions about once a day. I am being bullish on this prediction, but by the end of ’25 I project we will be working with more than 100 credit unions.”
Reed shared advice for credit unions considering playing in the crypto space.
“Credit union leadership, as well as boards, need to have what I call a digital roadmap that includes all things digital,” she said. “Credit unions these days, and all financial institutions, are really interacting with their members in the digital world.”
Reed said CUs must be learning how cryptocurrency fits best into what their members are doing.
“Are their members using it as an investment? Or are they using it as a basis for payments? Can they hold stablecoin deposits? They need to understand the ownership economy of Web3, union boards don’t know what Web3 is,” she said. “I think it’s important to understand that’s the next iteration, the next wave of the Internet.”
@ Newshounds News™
Source: CU Today
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BRICS: WHY CRYPTO MAY BE CLEAREST PATH THROUGH US TRADE WAR
2025 has come with rising geopolitical tensions that have created no shortage of uncertainty for global markets.
However, with BRICS and the United States set to face reciprocal tariffs, crypto may be the clearest pay through a US-driven trade war. Indeed, the emerging asset class could provide something that both sides want.
US President Donald Trump has maintained his aggressive economic policy stance since returning to the White House.
Specifically, he has targeted the growing BRICS economic alliance. With his eyes set on securing the end of de-dollarization and the global south seeking alternate trade currencies, they could have a joint solution in digital assets.
BRICS & US Could Use Crypto to Find Way Through Budding Trade War
Donald Trump’s contentious relationship with the BRICS alliance is undeniable. The economic bloc has been on the receiving end of several threats, as the President has promised to levy 150% tariffs on the collective. Specifically, he has targeted the group for its past attempts to de-dollarize global markets.
However, there could be a solution present for both sides. For BRICS, crypto may be the clearest path through a potential US trade war. Indeed, the asset class may provide a simple answer that gets both sides what they want, in the short and long term.
Trump’s main point of issue with BRICS is its efforts to move away from the US dollar. However, his weaponization of it reaffirms the necessity of that action. Moreover, the alliance has recently affirmed its decision to find alternative trade settlement currencies outside of the greenback.
Bitcoin could be an answer worth exploring for both sides. Adoption of the digital currency could ensure that the blocs don’t disregard the US dollar in favor of an alliance-denominated asset. Meanwhile, it is still a de-dollarization shift in its truest sense
Alternatively, the Trump administration has shown an affinity for Bitcoin. With a BTC reserve strategy to be released today, the adoption of the asset class could be beneficial to the United States.
A common ground in promoting the use of Bitcoin on a global scale could be the best answer to curtail any brewing trade war between the US and BRICS.
@ Newshounds News™
Source: Watcher Guru
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