Crypto Firms Are Eying Bank Charters Under Trump: Report

Several crypto firms are looking to become state or national banks under the Trump administration. Under the pro-crypto administration of President Donald Trump, the crypto industry hopes to achieve unprecedented growth, and one way industry participants may be exploring is by becoming banks. Crypto Firms Working on Bank Charter Applications Several crypto firms are looking to become state or national banks under the Trump administration. This is according to a Tuesday, March 18, Reuters report citing over six anonymous executives and several regulatory lawyers. According to the latter, there has been an uptick in bank charter application discussions with clients "cautiously optimistic" of approval under Trump. With bank charters, these crypto firms hope to bolster their legitimacy in the eyes of customers and bring down certain operating costs. For one, borrowing will become much easier for these firms as they can just reach into customer deposits. While this transition carries what some might see as burdensome regulatory scrutiny and applications are notoriously slow to process, crypto firms are likely banking on Trump's pro-innovation stance to usher in a wave of deregulation. These firms have also likely been encouraged by statements from Trump's regulatory appointees. Specifically, Federal Deposit Insurance Corporation (FDIC) Acting Chair Travis Hill and Federal Reserve Governor and Trump nominee for vice chair for supervision have called for a more streamlined bank charter application process. The recent Reuters report follows reports that Trump is on the verge of signing an executive order to roll back rules that made it difficult for crypto firms to access banking services. These reports also suggested that the executive order will push the Federal Reserve to grant crypto banks master accounts.