Cryptocurrency and Fintech companies are increasingly looking for bank charts in an attempt to grow their businesses under the Trump administration, According to In a report from Reuters, who spoke with more than half a dozen industry executives.
The motions come as the administration is seen as more friendly in the industry and there are opportunities to obtain licenses that regulators may slow down under previous administrations.
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While discussions about chasing the bank’s charters are rising, it is unknown how many companies will follow. It can cost ten -ten million dollars to start a bank, but there are benefits such as increasing credibility in the general public.
According to Reuters, 144 bank charter applications have been approved each year between 2000 and 2007, but that number retreats to just five approved each year between 2010 and 2023. 2008 marked the year of great financial crisis and subsequently increased investigation into banks.
The Trump administration has signed an openness to change in the financial sector, especially in the cryptocurrency industry. Since his inauguration in January, President Trump has Create a group working in crypto, Signed an Executive Order To create a national strategic bitcoin (Btc) reserve, and Hosting the first White House Crypto Summit.
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Crypto companies that applied for bank charters with us
Although crypto companies are not uncommon to look for bank charters in the United States, there are examples of some who succeeded in the 2020s. Crypto Exchange Kraken is Approved For a Bank Charter in Wyoming in 2020, Anchorage Digital Bank Received its charter in January 2021and crypto lender nexo Buy a stake at a holding company which owns a bank federal in 2022.
Companies face challenges when applying for bank charters in the United States such as compliance with anti-money laundering laws and compliance with the Bank Secrecy Act. Increased regulation and centralization administration may also run contrary to the spirit of crypto, where Decentralization is a major value.
However, securing a bank charter has a major financial benefit: Companies that make it can reduce the cost of capital by receiving deposits.
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