FameEX Hot Topics | Crypto Firms Pursue Bank Charters Under Trump Administration

Since the 2008 financial crisis, the number of approved bank charters in the United States has plummeted. But under the Trump administration, a growing number of cryptocurrency and fintech companies see a new window of opportunity. With the White House signaling a friendlier stance toward financial innovation, these companies are exploring the once-unlikely path of becoming fully chartered banks.

A Reuters report, based on interviews with over half a dozen industry executives, highlights this growing trend. While securing a bank charter has long been a costly and complex process—often requiring tens of millions of dollars in capital—companies are now weighing the benefits more seriously. A bank charter not only boosts a company’s credibility but also allows them to directly accept deposits and lower capital costs, a major incentive in a competitive market.

Historically, the regulatory environment has been a hurdle. From 2000 to 2007, an average of 144 bank charters were approved annually. That figure dropped sharply to just five approvals per year between 2010 and 2023, following the heightened scrutiny of the banking sector after the financial crisis. However, the Trump administration’s more favorable view of innovation in finance may mark a turning point for ambitious crypto firms.

In a series of bold moves since taking office, President Trump has created a crypto working group, signed an executive order to establish a national strategic Bitcoin reserve, and even hosted the first White House crypto summit. These efforts reflect a broader willingness to embrace the emerging digital economy, setting a tone that’s encouraging crypto players to consider banking licenses as a viable step forward.

Still, challenges remain. Crypto companies seeking charters must navigate complex compliance rules, including Anti-Money Laundering (AML) standards and the Bank Secrecy Act. Moreover, some in the crypto world question whether embracing traditional regulatory structures conflicts with the decentralized ethos of blockchain. But for firms looking to scale and gain legitimacy, a bank charter might be worth the trade-off.

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