As the Trump administration sends positive signals for financial innovation, the cryptocurrency industry is setting off a wave of applications for bank licenses. According to Reuters, citing multiple industry executives, since the Trump administration took office in 2024, cryptocurrency and financial technology companies have accelerated their applications for bank licenses to US regulators, trying to expand their business during the policy dividend period. This trend is seen as the industry’s response to the “friendly” regulatory environment – compared with the previous government’s cautious attitude towards crypto assets, the new government not only established a cryptocurrency working group, but also signed an executive order to establish a strategic reserve of Bitcoin, and held the first White House Crypto Summit to pave the way for industry compliance.
Behind the competition for bank licenses by cryptocurrency companies, there is an implicit intention to break through the discourse power of the traditional financial system. Data shows that between 2000 and 2007, the United States approved an average of 144 bank license applications per year, while after the 2008 financial crisis, supervision became stricter, and only 5 applications were approved per year from 2010 to 2023. Now, as the Trump administration emphasizes “relaxing regulations to stimulate innovation”, cryptocurrency companies have sensed the possibility of loosening policies. Although it costs tens of millions of dollars to establish a bank, obtaining a license can not only enhance public trust, but also reduce funding costs by absorbing deposits, which is particularly important for cryptocurrency institutions that urgently need mainstream market recognition.
It is worth noting that the integration of the cryptocurrency industry and the banking system is not without precedent. In 2020, the exchange Kraken obtained the first crypto bank license in Wyoming; in 2021, Anchorage Digital became the first crypto bank to obtain a federal license; in 2022, the lending platform Nexo indirectly obtained a license by acquiring a holding company. These cases provide a template for later comers, but also expose contradictions: cryptocurrency companies must comply with the Bank Secrecy Act and anti-money laundering regulations, which conflicts with the “decentralized” concept advocated by the industry. In addition, strict capital reserve requirements and operational transparency standards also discourage some companies.
Despite this, the change in policy direction continues to attract cryptocurrency institutions to enter the market. The Trump administration’s recently proposed “National Bitcoin Strategic Reserve” plan further strengthens the position of crypto assets in the mainstream financial system. Analysts point out that if more companies successfully obtain licenses, cryptocurrencies will accelerate the penetration of traditional banking businesses such as payment, custody and credit, and may even reshape the rules of global capital flows. However, this adventure also comes with risks – the high cost of regulatory compliance may force companies to abandon some decentralized features. How to find a balance between innovation and compromise will become a key proposition for the next stage of the industry.
