According to Reuters, cryptocurrency and fintech companies have been applying for U.S. banking licenses, but the number of approved banking licenses in the United States has dropped significantly since the 2008 financial crisis. After Trump took office, more and more companies believed that the Trump administration was very friendly to the crypto industry and might make new breakthroughs in becoming a formal licensed bank.
A Reuters report pointed out that although applying for a banking license has always been a costly and complicated process, usually requiring companies to invest tens of millions of dollars in the early stage, applying for a banking license may bring more benefits in this special period. Becoming a licensed bank can not only enhance the company’s credibility among the public, but also directly accept deposits, thereby reducing the cost of capital use and having greater appeal in a fiercely competitive market.
Historically, the regulatory environment has been the biggest operational obstacle. From 2000 to 2007, the United States approved an average of 144 banking licenses per year. After the financial crisis, U.S. regulators increased their scrutiny of the banking industry, especially between 2010 and 2023, when only 5 banking licenses were issued each year. But the Trump administration’s positive attitude towards financial innovation may bring new opportunities for crypto companies.
Since taking office, US President Trump has taken a series of bold measures, including the establishment of the White House Cryptocurrency Working Group, the signing of an executive order to establish a national strategic Bitcoin reserve, and the first crypto summit held at the White House. These actions reflect his willingness to embrace the emerging digital economy and create a favorable atmosphere for crypto companies to apply for banking licenses.
However, crypto companies applying for banking licenses still need to comply with complex compliance rules, including anti-money laundering (AML) standards and the Bank Secrecy Act. In addition, some crypto people are also questioning whether this kind of crypto bank under the traditional regulatory framework violates the core concept of blockchain decentralization. But for crypto companies that want to achieve scale and gain public trust, a banking license may be a potential investment worth more.
