Cryptocurrency companies in the U.S. are moving closer to full integration with traditional finance as they pursue banking licenses and prepare for stricter regulations on stablecoins. Among the companies at the forefront of this shift are Circle and BitGo, both of which are working to secure U.S. bank charters. Coinbase and Paxos are also reportedly exploring similar steps. These initiatives coincide with ongoing congressional discussions about new laws aimed at imposing tighter controls on stablecoin issuers, particularly those behind digital tokens pegged to the U.S. dollar.
BitGo is taking significant strides by applying for a full banking charter, which would allow the firm to offer banking services such as deposits and loans. The company is also involved with USD1, a stablecoin backed by World Liberty Financial and supported by members of the Trump family. BitGo holds USD1’s reserves, positioning the company as a key player in the stablecoin space. Circle, meanwhile, has ramped up its lobbying efforts, particularly as major financial institutions like Bank of America advocate for legislation that would favor traditional banks over nonbank stablecoin issuers. Bank of America has also expressed interest in launching its own stablecoin, should the regulatory environment allow for it.
Two key bills are currently advancing through Congress. The STABLE Act, which has gained support from Republicans, has passed the House Financial Services Committee. It calls for federal oversight of stablecoin issuers, mandates the separation of reserve funds from other company assets, and proposes a two-year ban on certain algorithmic stablecoins. In the Senate, the GENIUS Act has gained momentum, proposing both federal and state regulatory frameworks. This bill would require stablecoin issuers to comply with Anti-Money Laundering (AML) rules and maintain liquidity standards. It also seeks to classify stablecoin issuers as financial institutions under the Bank Secrecy Act, obligating them to report suspicious activity and verify their customers.
These legislative efforts come amid a more welcoming stance toward cryptocurrency firms under President Trump’s administration. Regulatory restrictions on banks collaborating with crypto firms have been eased, and the Federal Reserve plans to issue updated guidance on crypto-related banking activity later this year. Federal Reserve Chairman Jerome Powell has expressed support for clearer legal frameworks for stablecoins, noting their growing role in the broader economy.
Currently, Anchorage Digital is the only cryptocurrency company to hold a federal bank charter. The firm mainly serves institutional clients and is involved in significant lending initiatives, such as a $2 billion Bitcoin-backed loan with Cantor Fitzgerald and Copper. However, Anchorage Digital is also under investigation by the Department of Homeland Security.
While some traditional banks, such as U.S. Bancorp and Bank of America, are expanding their crypto services through partnerships, others remain cautious. International banks like Deutsche Bank and Standard Chartered are closely monitoring the U.S. crypto market as they evaluate potential entry.
As stablecoins like Tether and Circle’s USD Coin continue to play a critical role in the crypto ecosystem—used extensively for payments and trading—cryptocurrency companies are bracing for stricter regulations. They are positioning themselves to meet higher standards and secure greater access to the mainstream financial system.
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