A report from the Wall Street Journal cites that recent national adoption in the developing industry is influencing the stance of financial institutions. Since Donald Trump became the president in the US, he fostered a recent regulatory calm that sparked the interest of banks in expanding crypto operations in the country.
In the first three months of his second term, Trump set in motion several policy changes and executive actions with far‐reaching consequences for the cryptocurrency sector. For example, the Trump administration decided to dissolve the National Cryptocurrency Enforcement Team (NCET) within the Department of Justice, and the SEC filed to drop its lawsuit against Coinbase.
With bills on crypto and stablecoin regulations, as well as a national strategic crypto reserve proposal gaining momentum, banks and the digital asset industry are beginning to interconnect.
Banks such as London-headquartered Standard Chartered and Germany-based Deutsche Bank have explored expanding crypto operations into the US and are planning to make the move. The recent developments highlight the changing regulatory scene in the US as the industry continues to develop following the 2022 crypto crash.
Meanwhile, crypto firms are looking to explore the traditional financial market. Circle, who plans an IPO, and BitGo plan to apply for a banking charter in the US, together with Coinbase and Paxos. At the moment, Anchorage Digital is the only US-based crypto exchange with a banking charter. The company gained its licence in 2021, following thorough regulatory proceedings and incurring millions of dollars in costs. While it is subject to stricter regulations, Anchorage Digital operates as a traditional bank. It recently became a custodian for the BlackRock iShares Bitcoin Trust (IBIT) alongside Coinbase.
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