Cryptocurrency companies in the U.S. are moving towards becoming more integrated with traditional finance by seeking banking licenses and preparing for potential stablecoin regulations.
Cryptocurrency companies in the U.S. are moving towards becoming more integrated with traditional finance by seeking banking licenses and preparing for potential stablecoin regulations. Circle and BitGo are among the firms working on applications for U.S. bank charters. Coinbase and Paxos are reportedly exploring similar steps. These efforts come as Congress debates new laws that would impose stricter rules on stablecoin issuers, aiming to regulate how these dollar-pegged digital tokens are managed.
BitGo is applying for a full banking charter, which would allow it to offer services such as deposits and loans. The company is also involved with USD1, a stablecoin backed by World Liberty Financial, which is supported by members of the Trump family. BitGo is responsible for holding USD1’s reserves. Circle is also stepping up its lobbying efforts, particularly as large banks like Bank of America try to influence upcoming legislation to favor traditional institutions over nonbank stablecoin issuers. Bank of America has expressed interest in launching its own stablecoin if regulations allow.
Two major bills are currently in progress. The STABLE Act, supported by Republicans, passed the House Financial Services Committee and proposes federal oversight for stablecoin issuers, separating reserve funds from other company assets and imposing a two-year ban on certain algorithmic stablecoins. In the Senate, the GENIUS Act has gained traction, calling for both federal and state regulatory frameworks while requiring stablecoin issuers to follow Anti-Money Laundering rules and liquidity standards. This bill would treat stablecoin issuers as financial institutions under the Bank Secrecy Act, requiring them to report suspicious activity and verify customers.
These developments come as the U.S. government appears more open to crypto companies under President Trump’s administration. Previous restrictions on banks working with crypto firms have been loosened. The Federal Reserve plans to issue new guidance on crypto-related banking activity later this year. Fed Chair Jerome Powell has voiced support for establishing clear legal guidelines for stablecoins, pointing to their increasing use in the broader economy.
Anchorage Digital remains the only crypto firm with a federal bank charter. It caters mainly to institutional clients and is involved in lending initiatives like a $2 billion Bitcoin-backed loan involving Cantor Fitzgerald and Copper. However, the company is also under investigation by the Department of Homeland Security.
While some traditional banks, like U.S. Bancorp and Bank of America, are developing crypto services through partnerships, others remain skeptical. International banks such as Deutsche Bank and Standard Chartered are watching developments closely as they consider entering the U.S. crypto market.
Stablecoins, particularly Tether and Circle’s USD Coin, remain essential to the crypto ecosystem, widely used for payments and trading. As regulation advances, crypto companies are preparing to meet higher standards and gain deeper access to the financial system.
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