Recent regulatory relaxations in the US have prompted banks and financial institutions to expand their cryptocurrency operations, with significant legislative changes since Trump’s presidency influencing this shift. Notable banks, like Standard Chartered and Deutsche Bank, are exploring entry into the US crypto market, while firms like Circle and BitGo are pursuing banking charters to integrate into traditional finance.
Banks and financial institutions in the US are expanding their cryptocurrency operations as regulations become more relaxed. A report by the Wall Street Journal notes a surge in interest from these institutions linked to recent regulatory developments since Donald Trump’s presidency, which has facilitated a more welcoming environment for crypto activities.
During Trump’s second term, significant policy changes, including the disbandment of the National Cryptocurrency Enforcement Team by the Department of Justice and the SEC’s decision to withdraw its lawsuit against Coinbase, have positively impacted the crypto sector. Such actions have encouraged banks to broaden their engagement with cryptocurrencies.
The convergence of banking and cryptocurrency is underscored by legislative initiatives regarding crypto and stablecoin regulations, as well as proposals for a national strategic crypto reserve. International banks like Standard Chartered and Deutsche Bank are considering entering the US crypto market, reflecting the evolving regulatory landscape following the 2022 crypto downturn.
Crypto firms are also seeking integration into traditional finance, with companies like Circle planning an Initial Public Offering (IPO) and BitGo applying for US banking charters, joining Coinbase and Paxos in their pursuits. Currently, Anchorage Digital stands as the only US-based crypto exchange with a banking charter, acquired in 2021 after extensive regulatory scrutiny and significant financial investments. Anchorage now operates as a conventional bank and has taken on the role of custodian for the BlackRock iShares Bitcoin Trust alongside Coinbase.
