According to PANews, several fintech and cryptocurrency companies are exploring the possibility of becoming state-chartered banks in the United States under the administration of U.S. President Donald Trump. Industry executives believe that the current administration is more favorable towards their sector, providing an opportunity to obtain licenses that regulatory bodies were previously slow or reluctant to approve.
Alexandra Steinberg Barrage, a partner at Troutman Pepper Locke, noted an increase in interest, with several applications currently being processed. However, she emphasized that the trend has not fully developed, as clients remain cautiously optimistic, awaiting stability as the government appoints new banking regulators. Two sources involved in potential applications reported a significant rise in discussions and preparations for bank licenses, though the number of companies that will proceed remains uncertain.
While becoming a bank subjects institutions to more regulatory scrutiny, it can also reduce capital and operational costs in certain scenarios. Licenses can enhance a company's legitimacy in the eyes of customers and expand business and market opportunities. Carleton Goss, a partner at Hunton Andrews Kurth, highlighted that obtaining a bank license allows companies to lower borrowing costs by accepting deposits, which is a significant advantage. He is currently handling three such applications.
Industry insiders and analysts suggest that the emergence of new banks will boost competition within the sector and cater to specific customer groups or regions.
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