The Trump administration is implementing significant financial deregulation measures aimed at stimulating economic growth. A key initiative involves revising the Supplementary Leverage Ratio (SLR), a regulation established in 2014 following the 2008 financial crisis. The SLR requires large banks to maintain a minimum amount of high-quality capital relative to their total leverage, including low-risk assets like U.S. Treasuries and derivatives. Bank lobbyists argue that the SLR hampers trading and credit extension, advocating for changes to align U.S. standards with lower international ratios. Proposed reforms, expected by summer, reflect the administration’s broader deregulatory agenda. Financial sector leaders and policymakers support the move, claiming it could enhance liquidity and reduce borrowing costs. Critics, however, argue the timing is risky amid market volatility and economic uncertainty. Options include excluding low-risk assets from calculations, potentially freeing $2 trillion in bank balance sheets. This approach could make the U.S. an outlier and spur similar demands abroad. Most major U.S. banks are more constrained by stress tests and risk-based requirements than the SLR, possibly limiting the reform’s overall impact. Regulatory bodies like the Federal Reserve, FDIC, and OCC have not commented yet. That’s just where we are now. In addition to financial deregulation, the administration is focusing on the digital asset sector. The International Monetary Fund’s Managing Director, Kristalina Georgieva, expressed optimism about the administration’s initial steps towards deregulating digital assets. She noted that previous overregulation had stifled economic growth, and the current approach seems focused on achieving a balance between regulation and innovation. The administration has begun halting ongoing cases and collaborating with industry leaders. President Trump has also initiated a government stockpile of digital assets, including bitcoin, signaling a strategic shift towards integrating digital advancements in the economy. That’s just where we are now. Treasury Secretary Scott Bessent has endorsed the administration’s economic policies, asserting that tariffs, tax cuts, and deregulation are interconnected measures designed to stimulate long-term investment in the U.S. economy. Bessent emphasized that these initiatives aim to encourage companies to invest in American manufacturing by offering tax incentives and deregulation benefits. He projected these policies could lead to 3% economic growth by next year and reduce the federal deficit by approximately $300 billion annually. Despite a recent economic contraction and an IMF forecast of 1.8% GDP growth in 2025, Bessent remained optimistic, citing the resilience of U.S. financial markets and historical recoveries from major economic shocks. He advocated gradual deficit reduction to mitigate credit risk in Treasury debt, suggesting this would lower interest rates and support economic stability. That’s just where we are now. The administration’s deregulatory efforts extend to the energy sector. President Trump has consistently argued that environmental regulations imposed by previous administrations stifled U.S. energy production and hurt economic growth. His goal has been to make the U.S. an energy-independent superpower by expanding domestic production of oil, natural gas, and coal, while rolling back regulations that restrict fossil fuel extraction. Key regulatory rollbacks in the energy sector included the repeal of the Clean Power Plan, which sought to reduce carbon emissions from power plants, and the revision of the Waters of the United States (WOTUS) rule, which expanded federal oversight of waterways. The administration also opened up federal lands for energy exploration, including oil drilling in the Arctic National Wildlife Refuge (ANWR). For 2024, Trump’s platform calls for continuing this deregulatory approach, emphasizing the importance of reducing environmental regulations that he argues unnecessarily limit the growth of U.S. energy production. Trump believes that by reducing regulations, the U.S. can lower energy costs, create jobs, and maintain its energy dominance on the global stage. That’s just where we are now. In the telecommunications sector, the administration has taken steps that some view as heavy-handed regulation. The FCC, under Chairman Brendan Carr, has launched investigations into the decision-making regarding content at CBS, NPR, and PBS, as well as the content decisions of Apple, Alphabet, Microsoft, and Meta. The FCC has also launched an investigation of Comcast Corporation because diversity is a “core value of our business.” These actions have raised concerns about the FCC’s role in promoting freedom of speech and diversity. That’s just where we are now. The administration’s deregulatory agenda also includes the establishment of the Department of Government Efficiency (DOGE), an initiative tasked with cutting federal government spending. Led by businessman Elon Musk, DOGE members have filled influential roles at federal agencies and sought to vastly cut their spending, facilitating mass layoffs of federal government employees and the dismantling of federal agencies. Layoffs primarily focused on probationary employees, with nearly 10,000 federal employees fired by February 2025. Musk initially said that DOGE would cut $2 trillion from the United States federal budget, which he first revised to $1 trillion, and later to $150 billion. DOGE said in April 2025 that it had saved $160 billion; an analysis has suggested that its cuts and firings have cost $135 billion, and evidence has emerged of errors in DOGE’s accounting that incorrectly inflates the amount of money it has saved. That’s just where we are now. The administration’s deregulatory efforts are part of a broader economic strategy that includes the Mar-a-Lago Accord, a proposed economic and trade initiative aimed at restructuring global trade and monetary relations. Named after Trump’s Mar-a-Lago estate in Florida, the Accord is a blueprint for devaluing the dollar while preserving its role as the world reserve currency. The plan seeks to reduce the United States trade deficit, restore domestic manufacturing, and realign international economic relationships. It proposes to achieve these aims through the use of tariffs, currency and capital measures, and trade agreements tied to national security. As of early 2025, the Mar-a-Lago Accord has not been implemented and remains in the earliest stages of negotiation. Its success is highly uncertain, and many of its provisions are deliberately kept confidential to avoid disrupting delicate international talks. Public insight into the Accord is limited and primarily based on the work and public statements of Stephen Miran, chair of the Council of Economic Advisers, and Scott Bessent, Secretary of the Treasury. Miran’s report, A User’s Guide to Restructuring the Global Trading System, outlines many of the core ideas and principles believed to underpin the proposal. That’s just where we are now. In conclusion, the administration’s deregulatory efforts are aimed at stimulating economic growth and reducing government intervention in various sectors. While these measures have the potential to enhance liquidity, reduce borrowing costs, and promote investment, they also come with trade-offs, including increased market volatility, potential financial instability, and concerns about the erosion of regulatory safeguards. The administration is committed to monitoring the impact of these policies and making adjustments as necessary to ensure economic stability and growth.
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Tom Blake writes on markets, trade policy, and the government’s role in private enterprise. He studied economics at George Mason University and spent six years as a policy advisor for a business coalition before turning to financial journalism. His work examines the real-world impact of regulations, subsidies, and federal economic planning.