Circle,Coinbase,Seek US Banking Licenses Amid Regulatory Shift

Circle and Coinbase, two prominent players in the cryptocurrency industry, are reportedly preparing to apply for banking licenses in the United States. This move comes as part of a broader trend among leading crypto firms, including BitGo and Paxos, who are leveraging a more favorable regulatory environment to advance their long-term plans.

Each company is exploring different types of licenses tailored to their specific business models. Some are pursuing national trust or industrial bank charters, which would allow them to operate similarly to traditional banks. Others are targeting more limited licenses focused on stablecoin issuance and custody services. This strategic shift represents a significant change from the past few years, when the relationship between the crypto sector and traditional banks was marked by tension and mistrust.

During that period, financial regulators like the FDIC issued warnings to banking institutions to avoid crypto-related entities, leading to widespread de-banking across the industry. The current push for banking licenses could help close this gap, fostering closer collaboration between crypto firms and the traditional financial system. This development is seen as a positive step towards integrating cryptocurrencies more seamlessly into the broader financial landscape.

In parallel, major global banks are also preparing to expand their crypto services into the US market. Institutions such as Deutsche Bank and Standard Chartered, which have already built out crypto-related operations overseas, are now exploring opportunities to enter the American landscape. This renewed interest is driven by growing regulatory clarity and a more favorable stance towards digital assets from the Trump administration.

President Trump’s policies have emphasized the importance of digital assets in the country’s financial future, prompting renewed engagement with US lawmakers and regulators. As a result, financial regulators like the US Securities and Exchange Commission (SEC) are reviewing existing regulatory guidance to attract more participants to the sector. These efforts aim to eliminate ambiguity and establish a more predictable legal framework, which would allow the industry to thrive and innovate.

Overall, the push by crypto giants like Circle and Coinbase for banking licenses, coupled with the renewed interest from global banks, signals a significant shift in the regulatory landscape. This thaw in regulatory attitudes could pave the way for greater integration and collaboration between the crypto sector and traditional financial institutions, ultimately benefiting both industries and their customers.