Big banks and crypto companies are making a big push into the US crypto market. This follows a change in the government’s approach to regulating digital currencies, making it more friendly to the industry.
Crypto Firms Go Big
Lots of crypto companies are trying to get closer to the traditional banking system. Some, like Circle and BitGo, are aiming for bank charters or licenses. Coinbase and Paxos are reportedly considering similar moves. Others are looking for different types of licenses to let them act more like traditional banks, offering loans and taking deposits, or even issue stablecoins. Getting a bank charter means stricter rules, but it also opens up a lot of opportunities.
Big Banks Eyeing Crypto
Meanwhile, major banks like Deutsche Bank and Standard Chartered are also getting involved. They’re looking at ways to expand their crypto operations in the US. This follows a shift away from a stricter “regulation by enforcement” approach. While some banks are excited about the possibilities, others like KeyCorp are taking a more cautious approach, wanting to see how things develop and how regulations like anti-money laundering (AML) rules will play out.
Banks Ready to Jump In (When the Rules Allow)
Bank of America’s CEO, Brian Moynihan, has already said that banks are ready to dive into crypto payments as soon as the regulations are clear. He even suggested that Bank of America would consider issuing its own stablecoin if the legal framework is established.
The Government’s Changing Stance
The change in government policy has been significant. The SEC has slowed down on enforcement actions, and Congress is looking at new crypto-related legislation. There are proposals for things like a national stablecoin framework and even a Strategic Bitcoin Reserve. One bill, the GENIUS Act, aims to create a friendly regulatory environment for stablecoins like USDT and USDC, hoping to make the US the global leader in crypto.
