CRIPTO companies are looking for Bank Charters under Trump Admin – Report

Cryptocurrency and Fintech companies are increasingly looking for bank charters in an attempt to grow their companies under Trump Administration, toward On a report from Rojtes, who talked with more than half of the heads of the dozen industry.

The moving come, as the administration considers more industrial occasions and there are opportunities to obtain permits that regulators under previous administrations can be approved slowly.

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Although discussions about the growth of bank charters are on the rise, it is unknown to how much the company will eventually pass. It can cost tens of millions of dollars to start a bank, but there are benefits such as increased credibility with wide public.

According to Reuters, a 144 bank charter was approved in accordance with 2000. and 2007, but this number decreased to only five approved annually between 2010. and 2023. years. In 2008, she marked a year of a great financial crisis and has increased control over banks later.

The Trump administration signaled openness to innovation in the finance sector, especially in the cryptocurrencial industry. From the inauguration of January, President Trump has created the crypto working groups, Executive line signed create a National Strategic Bitcoin (Btc) Reserve and Host the first summit for crypto white house.

Related: Vioming Dam Crypto-Friendly Bank Charter Mode in the Custodia Bank lawsuit with Fed

CRIPTO companies that have applied for bank charters in the US

Although unusual that CRIPTO companies are looking for bank charters in the United States, there are examples of some who succeeded in the 2020s. Cripto Exchange Kraken was approved For a bank charter in Vioming in 2020. years, anchorage of digital banks He received his Charter in January 2021. yearsand crypto lender someone bought a stake in holding company It owns the Federal Authorized Bank in 2022. years.

Companies face challenges when applying for bank charters in the United States, such as the law on money laundering and adherence to money laundering in the Bank’s secrecy. Increased regulatory surveillance and centralization can also start the opposite spirit of Krupto, where Decentralization is the basic value.

However, providing a bank charter comes with a large financial operation: companies that make it can reduce capital costs by accepting deposits.

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