Dismantling the FDIC raises concerns: The FDIC ensures deposit security, established after the Great Depression to restore banking faith. Trump’s plan could jeopardize this safety net, leading to a potential banking crisis if deregulated.
Supporters claim it boosts innovation: Advocates of the plan believe deregulation could ignite growth in cryptocurrency startups, positioning the U.S. As a leader in decentralized finance, competing with rivals like China for global dominance.
Critics fear consumer risks: Opponents warn that removing FDIC protections could erode trust in banks, making consumers vulnerable to fraud and undermining the financial system’s stability, echoing lessons from the 2008 crisis.
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