FameEX Hot Topics | Under Trump Administration, Crypto Companies Aim for Bank Licenses

Since the 2008 financial crisis, the number of bank charter approvals in the United States has fallen dramatically. The economic collapse led to tighter regulations and increased scrutiny of the banking sector. However, under the Trump administration, there appears to be renewed interest in charters—this time from a different crowd. Cryptocurrency and fintech firms, once seen as industry outsiders, now view bank licenses as strategic tools for growth.

According to a Reuters report based on conversations with more than half a dozen industry executives, crypto companies are actively exploring the possibility of becoming fully chartered banks. While the process remains expensive and complex—often requiring tens of millions of dollars—the benefits are substantial. A bank charter enhances a company’s legitimacy, offers broader access to financial infrastructure, and allows firms to accept deposits, which can significantly reduce capital costs.

From 2000 to 2007, regulators approved an average of 144 bank charters annually. That number dropped sharply to just five per year between 2010 and 2023 as regulators grew more cautious after the financial crisis. But the Trump administration has taken a different approach. By signaling openness to financial innovation, it has created an environment in which crypto firms see new opportunities to engage with traditional banking structures.

Since taking office, President Trump has launched several initiatives aimed at supporting the crypto sector. These include forming a White House crypto working group, signing an executive order to establish a national Bitcoin reserve, and hosting the first crypto summit at the White House. These steps suggest a willingness to integrate digital assets into the broader financial system.

Despite the optimism, regulatory hurdles remain. Companies must still comply with Anti-Money Laundering laws and the Bank Secrecy Act. Additionally, some critics argue that bank charters could compromise crypto’s core principles of decentralization. Nonetheless, for firms looking to scale and gain public trust, the benefits may outweigh the ideological tensions.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.