Easing regulations for Bitcoin and crypto are attracting prominent banking giants back to the United States, with Standard Chartered and Deutsche Bank planning to make a foray.
A report from the Wall Street Journal, citing people familiar with the issue, has confirmed the recent development. According to the disclosure, the recent national adoption of the nascent industry is changing the earlier stance of prominent financial institutions.
For perspective, US President Donald Trump positioned himself as the “Bitcoin President,” promising to make America the crypto capital of the world. Since assuming power, he has taken those promises seriously, fostering the recent regulatory calm, which is now rekindling the interest of major banking giants.
Banks Double Down on Crypto in the US
Notably, the anonymous sources shared that London-headquartered Standard Chartered and Deutsche Bank, Germany’s largest bank, are planning a major move. Specifically, they plan to expand their crypto operation in the United States.
While the report did not explicitly detail how, when, or to what extent the plan has advanced, their interest in the US crypto market marks a shift from the early view. For perspective, regulations tightened in the United States, scaring off banks following unfortunate events like the FTX implosion and the Terra crash.
However, Trump stepped in and has been a change agent for the industry. With bills on crypto and stablecoin regulations, as well as a national strategic crypto reserve proposal gaining momentum, the barriers between banks and the digital asset industry are thinning out.
Crypto Firms Eye Banking Charters
Furthermore, crypto firms are also looking to explore the traditional financial market to the fullest, in what is a dense commingling. Per the familiar sources, digital asset firms like Circle, which is eyeing an IPO, and BitGo plan to apply for a banking charter. Coinbase and Paxos are also targeting a similar move.
Recall that Anchorage Digital is the only US-based crypto exchange with a banking charter. The firm received its license in 2021, following rigorous regulatory proceedings and incurring millions of dollars in costs.
While it has stricter regulations, the firm enjoys a full license to operate like a traditional bank. It recently became a custodian alongside Coinbase for the BlackRock iShares Bitcoin Trust (IBIT).
Meanwhile, the recent developments highlight the changing regulatory scene in the United States as the industry continues to wear a new look following the 2022 crypto crash. Notably, at the heart of this transition are Trump and other crypto pioneers.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
