A group of leading crypto companies—including stablecoin issuer Circle and digital asset custodian BitGo—are weighing the possibility of applying for U.S. bank charters or licenses, according to a Wall Street Journal report.
Citing people familiar with the matter, the report also named Coinbase and Paxos among those considering banking licenses. Paxos already received conditional approval for a U.S. bank charter from the Office of the Comptroller of the Currency (OCC) in 2021.
Financial technology and crypto companies are increasingly seeking state or national bank charters, viewing the Trump administration as more favorable to their expansion plans.
The move also comes as lawmakers and regulators step up efforts to define the legal status of stablecoins. Federal Reserve Chair Jerome Powell recently said it would be “a good idea” to establish a clear legal framework for stablecoins, citing their growing role in payments and the need for safeguards following a series of high-profile failures across the crypto industry.
Two bills—each offering a different approach to regulating stablecoins—are moving through Congress. The STABLE Act, advanced by the House Financial Services Committee in April, would impose tighter federal oversight and block the issuance of stablecoins backed by other digital assets for two years. It also requires that customer reserves be fully segregated from company funds.
The competing GENIUS Act, which passed the Senate Banking Committee in March, allows for a combination of state and federal oversight. It aims to support U.S. stablecoin issuers and includes tougher requirements around money laundering, reserve management, and sanctions screening.
Under the GENIUS Act, issuers would be classified as financial institutions under the Bank Secrecy Act, subjecting them to enhanced compliance rules and user verification obligations.
For crypto companies, a banking license could open the door to offering services like deposit-taking and lending. But the step would also place them under tighter scrutiny. Anchorage Digital, the only crypto firm currently holding a federal bank charter, has reportedly spent millions on compliance and is now under investigation by the Department of Homeland Security’s El Dorado Task Force.
The push for bank charters follows a decline in approvals since the financial crisis, with just four new bank charters granted in 2023. Before the crisis, regulators approved an average of 144 applications per year from 2000 to 2007. Industry sources expect more charter applications now, particularly with Trump’s deregulatory stance and a focus on fostering innovation and growth in the financial sector.