A New Era for Financial Oversight

With Donald Trump’s return to the White House, financial institutions are bracing for a regulatory shake-up that could redefine the landscape of banking, fintech, and investment management. His first administration was marked by an aggressive push for deregulation, rolling back numerous financial restrictions in an effort to stimulate economic growth. However, as the financial ecosystem evolves—with the rise of fintech, digital assets, and shifting global markets—questions loom over how a second Trump presidency will approach financial oversight.

Will Trump double down on his deregulatory agenda? Or will new economic pressures and industry crises force a shift in approach? Industry experts are watching closely, particularly in areas like fintech oversight, cryptocurrency regulation, and bank mergers.

Fintech Faces Increasing Scrutiny

One of the most pressing regulatory concerns is the growing role of fintech companies, particularly those acting as intermediaries between banks and consumers. Over the past decade, fintech firms have revolutionized the financial sector, offering innovative solutions in banking, lending, and payments. However, as these firms continue to operate in a regulatory gray area, concerns about consumer protection and financial stability are rising.

During a recent episode of Integro Talks, financial expert Patricia Hernandez pointed out a significant issue in the fintech space: the lack of oversight over non-bank financial intermediaries. She highlighted a case where a fintech firm collapsed, leaving regulators scrambling to determine where customer funds were held.

“The risk didn’t happen because the bank failed,” Hernandez explained. “The risk happened because the middleman failed, and those accounts were in the name of the middleman.”

This raises a crucial question: should the regulatory burden fall solely on banks, or should fintech companies be subject to the same rigorous compliance standards? While Trump’s first term eased restrictions on banks, will a second term see regulators take a more aggressive stance on fintech, ensuring these companies adhere to similar accountability measures? It remains to be seen.

The Unfinished Business of Cryptocurrency Regulation

Cryptocurrency regulation remains a hot-button issue in Washington, and Trump’s second term could determine the future of digital assets in the U.S. Over the past few years, the crypto industry has experienced explosive growth, accompanied by high-profile collapses and fraud cases. Despite this, regulatory agencies remain divided on how to oversee the industry.

A major challenge is the ongoing jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which both claim authority over certain aspects of digital assets. This regulatory uncertainty has left crypto firms operating in legal limbo, stifling innovation and pushing some companies to move offshore.

Hernandez emphasized that creating a clear regulatory framework is crucial. “If we could get an agreement where somebody is going to regulate [the industry], that would be a good thing,” she said. “It would level the playing field for highly regulated banks that are competing against firms with little oversight.”

The question now is whether Trump’s administration will establish clear, industry-friendly guidelines or continue with the fragmented approach seen in recent years.

Bank Mergers and Acquisitions: A New Wave of Consolidation?

Another area of focus in Trump’s second term will be bank mergers and acquisitions (M&A). The first Trump administration encouraged financial institutions to grow through consolidation, rolling back regulations that previously made M&A deals more cumbersome. However, with fewer small and mid-sized banks left to acquire, the focus may shift toward fostering new financial institutions.

Hernandez noted that some regulators are beginning to recognize the importance of community banks and are encouraging the formation of new financial institutions—a notable shift from the post-financial crisis era, when new bank charters were nearly nonexistent.

“We have the first de novo bank in 15 years in [Miami-Dade] county,” she said, referring to a newly chartered bank. This signals a potential change in regulatory attitudes, where rather than simply allowing consolidation, there may be a push to support the creation of new banks that cater to local communities.

This shift could bring new opportunities for entrepreneurs and investors looking to enter the banking industry. However, the overall regulatory climate will determine how feasible it will be for new banks to thrive in an environment that is still largely dominated by major financial institutions.

Preparing for a New Regulatory Reality

As Trump’s second term unfolds, financial institutions will need to stay ahead of regulatory developments. While some expect a continuation of the deregulatory push from his first term, others anticipate adjustments based on emerging risks, such as fintech failures, crypto volatility, and economic instability.

Key areas for businesses to watch include:

• Stricter compliance measures for fintech intermediaries: As financial failures expose gaps in oversight, regulators may require fintech firms to adopt banking-like compliance measures.
• A more defined regulatory framework for cryptocurrency: Clearer rules could provide stability for crypto firms and investors, though enforcement actions may increase.
• Shifts in bank M&A strategies: While consolidation will continue, there may also be new incentives to establish community banks.

For financial professionals, staying proactive will be critical. Whether through enhanced compliance programs, strategic partnerships, or regulatory advocacy, adapting to the evolving landscape will determine which institutions thrive—and which get left behind.

Trump’s second term presents both risks and opportunities for the financial sector. As the regulatory framework shifts, firms that remain flexible and well-prepared will be best positioned for success in this new era of financial oversight.

Integro Advisers: A Strategic Partner in Navigating Regulatory Changes

As financial institutions brace for the shifting regulatory landscape under Trump’s second term, having a knowledgeable and proactive compliance partner is more critical than ever. Integro Advisers specializes in helping financial firms, fintech companies, and investment managers adapt to evolving regulations, ensuring they meet compliance requirements while maintaining operational efficiency and maximizing business success.