- Crypto companies are seeking bank licenses to offer services like deposits and loans under clear US regulations.
- New bills in Congress aim to regulate stablecoins and define rules for crypto firms across federal and state levels.
- Traditional banks are also planning to enter the US crypto market due to growing legal clarity and demand.
Several major cryptocurrency companies are reportedly exploring the possibility of obtaining bank charters in the United States. These firms include Circle, BitGo, Coinbase, and Paxos. The move comes as U.S. lawmakers and regulators accelerate efforts to define stablecoin regulations.
Different License Paths Under Review
According to sources cited by The Wall Street Journal, the companies aim to align with existing banking rules. Each firm is considering a different type of license based on its core operations. Some are seeking full bank charters. Others are targeting national trust or industrial bank charters. These licenses could allow crypto firms to function similarly to traditional banks.
The transition occurred after past conflicts between digital currency operations and conventional financial organizations. The de-banking of crypto firms because of regulatory concerns became widespread in previous years. The businesses which had experienced de-banking are now transforming to better integrate with traditional financial institutions.
New Stablecoin Bills Advance in Congress
The recent developments come as two stablecoin bills advance in Congress. These are the STABLE Act and the GENIUS Act. Both bills aim to regulate the growing stablecoin market but take different approaches.
The STABLE Act seeks stricter federal oversight. It includes a two-year ban on new stablecoins backed by self-issued digital assets. It also requires issuers to separate customer reserves from operational funds. These measures are designed to reduce risks to consumers and the financial system.
Meanwhile, the GENIUS Act allows for state and federal regulation. It supports a broader legal framework for stablecoin payments. The bill includes tighter Anti-Money Laundering standards and requires user verification and suspicious activity reporting. The aim is to improve trust while maintaining flexibility for innovation.
Compliance Pressures Increase for Charter Holders
Bank charters could provide a path for crypto firms to offer lending and deposit services. However, firms with charters must meet strict compliance standards. Anchorage Digital, a firm with a federal charter, reportedly spends millions on regulatory compliance.
Despite progress, scrutiny remains. Reports suggest that Anchorage Digital Bank is under investigation by a federal task force. Still, more crypto firms continue to explore regulatory paths to ensure long-term survival in the market.
Traditional Banks Eye U.S. Crypto Market
Global banks such as Deutsche Bank and Standard Chartered are also assessing entry into the U.S. crypto space. These banks are reportedly planning to extend their overseas crypto services to U.S. clients.
