Why Crypto Firms Seeking Bank Charters Is Gaining Momentum Under the Trump Administration
Crypto firms seeking bank charters are making headlines again, as the Trump administration signals a friendlier regulatory environment for digital assets. Several U.S.-based digital asset companies—including stablecoin issuers Circle and Paxos, as well as crypto exchange Coinbase and infrastructure provider Bitgo—are reportedly exploring the possibility of applying for bank charters and licenses. This shift marks a strategic pivot toward deeper integration between cryptocurrency and traditional financial institutions.
The Wall Street Journal claims that this revived interest results from the Trump administration’s supportive attitude towards blockchain innovation and its aggressive actions to destroy the once unfriendly regulatory environment. From January, the administration has named pro-crypto people to important government positions including Paul Atkins, newly confirmed chairman of the U.S. Securities and Exchange Commission (SEC). Atkins, who is well known for his positive attitude of crypto, is anticipated to simplify regulatory systems that have historically been in the way of digital asset companies.
Firms that had shunned looking for banking ties because of the FTX disaster have been emboldened by this policy turn. Crypto companies looking for bank charters are re-evaluating their desires to engage more completely in the financial system given the approaching regulatory certainty. Under regulatory supervision, the charters would let these companies to create stablecoins, issue loans, and accept deposits.
For example, Circle and Paxos are said to be looking into banking licences that would let them provide digital dollar substitutes straight to companies and customers. Coinbase and Bitgo, on the other hand, are considering national trust or industrial bank charters, which would greatly increase the range of financial services they provide.
Becoming a chartered bank, though, is not easy. The experience of Anchorage Digital—the only crypto-native firm to successfully get a banking charter—offers a preview of the difficulties to come. To satisfy compliance requirements, Anchorage had to spend millions of dollars and was even noted at one time for deficiencies in its anti-money laundering procedures. Though he was hopeful that banking rules and cryptocurrency could coexist, CEO Nathan McCauley admitted the strict character of the supervision.
McCauley said, “[The] whole gamut of regulatory and compliance obligations banks have can be linked to the crypto industry.”
The chance is enormous despite the difficulties. A bank charter lets you run worldwide without a hodgepodge of state-by-state licences, gives you legitimacy and access to Federal Reserve payment rails. For a crypto sector looking longevity and confidence in the post-FTX era, these advantages are more and more enticing.
The proactive regulatory approach of the Trump administration might speed up popular acceptance of digital assets and create a new class of crypto companies looking for bank charters. The merging of crypto and traditional finance is no longer a question of “if” but “when” given major actors now indicating intent and the regulatory environment getting more favourable.
