Crypto Companies Seek to Apply for Bank Charters Under President Trump’s Administration

Jimmy Aki
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A new report revealed that financial technology and cryptocurrency companies in the United States are seeking to become state and national bank charters. They view the President Donald Trump administration as more supportive of their industry, creating a favorable environment for regulatory approval.

If granted, these bank charters could improve their credibility with customers and provide greater opportunities for business growth.

Uncertainty Surrounds How Firms Will Secure Bank Charters

According to an exclusive report by Reuters, a source from a major law firm noted that many crypto businesses are considering bank charter applications but are proceeding with caution, waiting for regulatory conditions to stabilize before committing fully.

Becoming a bank involves more regulatory oversight, but it also has many benefits.

Firms that obtain bank charters can lower capital costs and gain legitimacy in the eyes of customers and investors. Even better, securing a bank license allows firms to reduce borrowing expenses using customer deposits.

Industry experts believe the approval of more bank charters will increase competition and offer tailored financial services to specific market segments. However, the number of newly approved bank charters has been historically low.

The report detailed that from 2010 to 2023, regulators approved an average of five new bank charters per year, a sharp decline from the 144 annual approvals between 2000 and 2007.

Regulatory approvals are still happening, though at a slow pace. On Monday, the Office of the Comptroller of the Currency granted full approval to fintech firm SmartBiz to acquire Centrust Bank, a community bank in Chicago.

This approval gives SmartBiz a national bank charter, marking the first such approval for a fintech firm since 2021. Analysts predict this trend of fintech firms seeking bank charters will continue.

President Trump’s Deregulation Policies Will Pave the Way for Bank Charters

The report suggests that President Trump is expected to implement deregulation policies that promote business growth. These changes could create a favorable environment for more bank charters to be approved under his administration.

Already, President Trump has reshaped the regulatory sector. He replaced former SEC chair Gary Gensler with Mark T. Uyeda, a pro-crypto leader, and appointed a new CFTC chair to advance supportive regulations.

On March 6, he signed an executive order to establish a Strategic Bitcoin Reserve and a United States Digital Asset Stockpile.

Shortly after, Senator Cynthia Lummis reintroduced the BITCOIN Act to formally create a U.S. Strategic Bitcoin Reserve.

Further regulatory shifts appear to be on the way. A proposed reversal of Operation Choke Point 2.0, which previously limited crypto firms’ access to banking services, signals a major policy change.

These developments indicate a pro-crypto stance from the administration, potentially clearing the path for more bank charter approvals.

However, securing a bank charter remains a complex and costly process. Legal experts estimate that setting up a new bank typically requires between $20 million and $50 million.

Firms must also comply with strict anti-money laundering laws and the Bank Secrecy Act, making the process challenging.

Political resistance could also pose obstacles. Some lawmakers oppose President Trump’s crypto policies, which may slow down efforts to expand bank charters.

Recently, Democratic House Representative Gerald E. Connolly urged the U.S. Treasury to halt efforts to establish a strategic crypto reserve, highlighting ongoing political divisions.

Additionally, economic factors could impact the process. President Trump’s aggressive trade policies, including new import tariffs, have raised concerns about a potential economic slowdown.

Tariffs on goods from Mexico and Canada have sparked fears of a recession, which could further complicate financial regulations and business expansion plans.

While the push for more bank charters is gaining momentum, regulatory challenges, political resistance, and economic uncertainties could slow progress.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.