According to Zhicheng Finance APP, at this week's Reuters NEXT conference in New York, U.S. bankers expressed caution towards Cryptos, although the market generally expects that under the leadership of president-elect Trump, more friendly regulations will pave the way for lending institutions to expand into the digital asset space.

Bankers said that Trump promised to become the 'Crypto President' and end the Biden administration's crackdown on the industry to secure campaign funds from the Crypto sector, but Banks are unlikely to be the first to enter this volatile asset.

Goldman Sachs (GS.US) CEO David Solomon stated, 'The regulatory framework must evolve... Everyone is speculating on how the regulatory framework will develop, but it is still unclear.'

He pointed out that if the rules change, this Wall Street giant will 'evaluate' the Trades of top Cryptos such as Bitcoin and Ethereum. 'But for now... our ability to act in these markets is extremely limited,' he added, noting that Cryptos are speculative Assets.

Bank of New York Mellon CEO Robin Vince said that the bank recently started providing custody services for Cryptos held in ETFs, and it has also invested in a range of digital asset services. However, he noted that any new venture requires appropriate safeguards and must undergo several macroeconomic cycles of "real-world testing."

'We have seen several cycles of Cryptos. We must observe how some of these Assets will evolve,' he added.

Under Biden's leadership, banking regulators have made it more difficult for large lending institutions to hold Cryptos and issued accounting guidance that makes it extremely costly for banks to offer Crypto custody services.

With Trump taking office in the White House, this situation is expected to change, as the Crypto Industry is pushing a series of ambitious policies to promote the widespread adoption of digital Assets, including the abolition of the USA Securities and Exchange Commission's accounting guidance and urging banking regulators to loosen their scrutiny of the Crypto Industry.

In a key step of this policy reform, Trump announced last week that he would appoint former PayPal (PYPL.US) executive and Crypto evangelist David Sacks as the White House's 'Crypto Czar', and nominate Washington lawyer Paul Atkins, a supporter of Cryptos, to chair the SEC. This latter announcement pushed Bitcoin to exceed the milestone of $0.1 million for the first time.

However, Trump has yet to announce his banking regulators, and Federal Reserve Vice Chairman Michael Barr, responsible for banking regulation, is skeptical about Cryptos and has stated he will serve until 2026. This introduces uncertainty in the speed at which banking regulators can loosen loans and Trades involving Cryptos, especially after the turmoil in the Crypto industry last year led to the collapse of lending institutions Silvergate and Signature Bank.

Market regulators from the USA CommodityFutures Trading Commission (CFTC)'s latest data shows that investors are significantly reducing their net short positions in US soybean, corn, and wheat contracts, easing bearish sentiment in the market.Commission's Democratic commissioner Kristin Johnson stated that this turmoil included the collapse of the leading crypto Exchange FTX, but policymakers might soon forget about this crisis.

Johnson said, 'One of my greatest concerns with any administration is that they forget the lessons we should have learned from many previous crises.'

Bankers stated that even with regulatory relaxation, any expansion into Cryptos will be driven by client demand, which remains limited.

Matt Gellen, the Consumer Investment and Employee Banking and Investment Director at Bank of America (BAC.US), stated that the bank offers some clients exposure to Cryptos through ETFs, but "has not seen a lot of interest."

Akita Somani, Senior Vice President and Director of Global Strategy for Inclusive Growth at U.S. Bancorp (USB.US), mentioned that affluent young professionals are more likely to seek out investment options that may include Digital Assets, but Bank of America has not seen "huge demand" either.