Easing regulations in the US are prompting banks to expand their cryptocurrency operations. Influential policy changes under Trump’s administration have encouraged financial institutions to engage more with the crypto sector. Notable banks are exploring US markets, while crypto firms seek integration into traditional finance. The only US-based crypto exchange with a banking charter, Anchorage Digital, has recently begun custodial services for a major trust alongside Coinbase.
Easing regulations in the cryptocurrency sector have spurred banks and financial institutions in the US to expand their crypto operations. This shift is evident as more crypto firms seek to penetrate traditional financial markets. The Wall Street Journal reported that recent national adoption and regulatory changes have positively influenced banks’ strategies, particularly since the onset of Donald Trump’s administration, which fostered a more lenient regulatory environment for cryptocurrencies.
In the early stages of Trump’s second term, significant policy adjustments were initiated, impacting the cryptocurrency landscape. Notably, the dissolution of the National Cryptocurrency Enforcement Team (NCET) by the Trump administration and the abandonment of a lawsuit against Coinbase by the SEC served to boost industry confidence. These actions mark a shift in regulatory attitudes, laying the groundwork for financial institutions to engage more freely in crypto operations.
Current legislative proposals, including bills on crypto and stablecoin regulations and the establishment of a national strategic crypto reserve, are facilitating deeper connections between banks and the digital asset sector. Prominent banks like Standard Chartered and Deutsche Bank are actively considering expansions into US crypto markets, signalling a notable transformation of the regulatory environment. This evolution follows the crypto market’s recovery after the significant downturn experienced in 2022.
Concurrently, several crypto firms, including Circle and BitGo, are exploring routes to enter the traditional banking system, with plans for initial public offerings and banking charter applications. Currently, Anchorage Digital stands out as the only US-based crypto exchange holding a banking charter, having secured its license in 2021 amidst rigorous regulatory scrutiny. Despite facing stringent regulations, Anchorage Digital functions like a standard bank and recently commenced custodial services for the BlackRock iShares Bitcoin Trust (IBIT), in partnership with Coinbase.
