U.S. digital asset firms are reportedly considering applying for bank charters and licenses, encouraged by the Trump administration’s more favorable stance towards the crypto industry.
Trump Policies Spur Crypto Firms’ Banking Industry Interest
Several U.S. digital asset firms are considering applying for bank charters and licenses, according to a Wall Street Journal report citing anonymous sources. The report stated that stablecoin issuers Circle and Paxos are among the digital asset firms contemplating acquiring the bank charters or licenses. Crypto exchange Coinbase and digital asset infrastructure provider Bitgo are similarly seeking to obtain banking licenses.
According to the report, the firms are seeking to take advantage of the Trump administration’s more conciliatory stance toward the digital asset industry. Since assuming office Jan. 20, the Trump administration has moved to fulfill its campaign pledge to end government hostility toward the cryptocurrency industry.
To achieve this, the administration has appointed known crypto advocates to key government posts. As reported by Bitcoin.com News and other media outlets, the Trump administration’s nominee for chairman of the U.S. Securities and Exchange Commission, Paul Atkins, was recently confirmed by the U.S. Senate. Known to be pro-crypto, Atkins is expected to help establish a clear regulatory framework for digital assets.
Atkins’ confirmation, as well as that of several crypto-friendly figures, has in turn convinced crypto firms to seek bank charters or licenses two years after the collapse of FTX prompted players in the banking system to shun the digital asset industry.
According to the WSJ report, some of the digital assets firms are keen on securing national trust or industrial bank charters, which would enable them to take deposits and issue loans. Other firms are reportedly interested in obtaining a license that allows them to issue stablecoins.
Although securing a bank charter would make the firms and indeed crypto more intertwined with the banking system, such an approval entails increased scrutiny. Furthermore, complying with the attendant rules may prove costly, as Anchorage Digital, the only crypto firm issued a banking charter, found.
Besides incurring millions of dollars, Anchorage was once flagged by a banking regulator for having deficiencies in its anti-money laundering systems. Anchorage CEO Nathan McCauley is quoted in the report acknowledging that having a bank charter has its own challenges. However, McCauley expressed hope that regulations governing banks can be intertwined with the crypto industry.
“[The] whole gamut of regulatory and compliance obligations that banks have can be intertwined with the crypto industry,” McCauley is quoted as saying.
Source: Bitcoin
