Cryptocurrency firms in the United States are increasingly aligning with traditional finance by pursuing bank charters amid rising regulatory focus on stablecoins. Companies like Circle and BitGo have started the application process for federal banking licenses, allowing them to expand services such as deposits and loans. Coinbase and Paxos are also considering similar moves. These steps come as lawmakers debate legislation to tighten the oversight of dollar-pegged digital assets. BitGo is involved with USD1, a stablecoin backed by World Liberty Financial, and is responsible for managing its reserves. Meanwhile, Circle is increasing its lobbying efforts as traditional banks, including Bank of America, express interest in the stablecoin sector pending regulatory clarity.
Two key legislative proposals are under review: the STABLE Act, which mandates federal supervision and reserve segregation, and the GENIUS Act, which includes both federal and state regulations, anti-money laundering compliance, and liquidity rules. Federal Reserve Chair Jerome Powell has expressed support for clearer rules, and new guidance on crypto-related banking is expected later this year. Currently, Anchorage Digital remains the only crypto company with a federal charter, although it is under investigation. As stablecoins like USDC and Tether remain central to digital payments and trading, the crypto industry is preparing to meet formal financial standards.
