As of 2025, cryptocurrency and fintech companies are seizing the chance to obtain banking charters enabled by regulatory changes under Trump's administration.
A Friendlier Regulatory Landscape
From 2010 to 2023, regulators approved an average of only five new bank charters per year, but the re-election of the Trump administration has sparked optimism. Fintech and crypto firms foresee reduced regulatory burden.
Why Are Crypto Firms Chasing Banking Charters?
The key reasons for crypto firms seeking bank charters are cost efficiency and increased credibility. A charter allows a significant reduction in borrowing costs while providing legitimacy.
A Shifting Banking Sector Under President Trump
Successful crypto applications for bank charters could influence the entire US banking industry, currently boasting over 4,500 banks. New crypto-backed banks could introduce fresh competition and innovation. Nonetheless, the road is challenging, and the market awaits proof of concept.
While crypto firms continue to seek bank charters to reduce costs and strengthen their market position, Trump's administration's regulatory climate may provide opportunities for fresh innovation.
