Circle, Paxos, Coinbase, and others seek bank charters amid Trump-led crypto comeback
The post Circle, Paxos, Coinbase, and others seek bank charters amid Trump-led crypto comeback appeared on BitcoinEthereumNews.com.
Crypto companies are pushing hard into US banking just as Trump reopens the door. According to the Wall Street Journal, Circle, Paxos, Coinbase, and BitGo are now planning to apply for bank charters or other official licenses. This follows Trump’s vow to make America a “Bitcoin superpower,” a promise that has already started reshaping how crypto interacts with financial regulation. The White House has backed a new strategy that encourages crypto companies to work more closely with the banking system, and many in Congress are now pushing two bills that would force stablecoin companies to obtain legal licenses. Circle and BitGo want to become federally chartered banks. Coinbase and Paxos are considering their options too, eyeing everything from national trust charters to industrial bank licenses, which would let them hold deposits or issue stablecoins legally. Some want to operate like lenders. Others just want permission to issue a stablecoin under tight legal rules. One of those new tokens is already on the way. World Liberty Financial, the crypto company owned by the Trump family, recently announced USD1, a stablecoin that would be backed by reserves and held in custody by BitGo. The Journal said BitGo is preparing to submit its charter application very soon. If approved, the company would be subject to much stricter oversight under federal law. Crypto companies apply for charters to meet compliance rules Only one crypto company has ever successfully landed a federal bank charter—Anchorage Digital. CEO Nathan McCauley, who secured the license in 2021, said the company has had to pour “tens of millions” into keeping up with compliance requirements. He added that the crypto industry now has to meet the “whole gamut of regulatory and compliance obligations that banks have.” In 2022, regulators slapped Anchorage with a consent order for failing to meet anti-money-laundering…
Filed under: News - @ April 21, 2025 2:29 pm