As cryptocurrency continues to intersect with traditional finance and politics, US lawmakers and industry leaders are pushing for regulatory clarity while navigating new challenges. Representative Ro Khanna recently expressed optimism that Congress could pass both a stablecoin bill and a crypto market structure bill this year, citing growing bipartisan support. At the same time, cryptocurrency and fintech firms are increasingly seeking bank charters under the Trump administration’s industry-friendly stance, signaling a shift in how digital assets integrate with traditional banking. However, the rise of political figures launching personal tokens, such as President Trump’s meme coin, has sparked concerns over conflicts of interest and the broader implications for regulatory oversight.
Crypto and Fintech Firms Chase Bank Charters Under Trump Administration’s Industry-Friendly Stance
The Trump administration’s pro-business approach is igniting a wave of interest among cryptocurrency and fintech companies seeking bank charters. According to a recent Reuters report, executives from more than half a dozen companies have expressed growing interest in obtaining these coveted banking licenses. The shift marks a significant departure from previous regulatory hesitations, signaling potential transformations in both the digital asset and financial services industries.
Historically, securing a bank charter in the United States has been an uphill battle, especially for crypto firms. Following the 2008 financial crisis, regulatory scrutiny intensified, leading to a sharp decline in approvals. Between 2000 and 2007, an average of 144 bank charters were granted per year. However, that figure plummeted to just five approvals annually from 2010 to 2023 as regulators adopted a more cautious approach.
Now, under President Trump’s leadership, financial innovation is once again taking center stage. The administration’s stance has already resulted in several crypto-friendly initiatives, including:
The establishment of a national crypto working group to explore blockchain technology’s potential role in the financial system.
An executive order directing the creation of a strategic national Bitcoin (BTC) reserve, a move that has sparked widespread debate.
The first-ever White House crypto summit, bringing industry leaders together to discuss policy and innovation.
These measures are creating a more favorable climate for financial technology firms looking to integrate with traditional banking infrastructure.
Obtaining a bank charter can be a game-changer for companies in the cryptocurrency and fintech sectors. The primary motivations include:
Access to Lower-Cost Capital – A bank charter allows firms to accept deposits, significantly reducing their reliance on external funding sources such as venture capital or high-interest loans.
Regulatory Legitimacy and Public Trust – Operating as a chartered bank enhances credibility and fosters trust among institutional investors, corporate clients, and retail consumers.
Enhanced Product Offerings – With a banking license, companies can expand their services to include lending, custody, and payment solutions without needing to partner with third-party banks.
However, securing a charter is a costly and time-consuming endeavor. Estimates suggest that launching a bank can require an upfront investment of tens of millions of dollars, along with a multi-year approval process. Additionally, crypto firms must comply with stringent financial regulations, including anti-money laundering (AML) laws and the Bank Secrecy Act (BSA).
Despite the challenges, a handful of cryptocurrency firms have successfully entered the banking industry in recent years. Notable examples include:
Kraken Bank (2020) – The crypto exchange became the first Special Purpose Depository Institution (SPDI) in Wyoming, offering custody and digital asset banking services.
Anchorage Digital Bank (2021) – A pioneering digital asset custodian, Anchorage became the first federally chartered crypto bank in the US.
Nexo (2022) – The crypto lending platform acquired a stake in a holding company that owns a federally chartered bank, granting it regulatory advantages.
These success stories shed light on the growing intersection between decentralized finance (DeFi) and the traditional banking sector. However, industry participants remain divided on whether bank charters align with the fundamental ethos of cryptocurrency.
The Centralization vs. Decentralization Debate
One of the core tenets of blockchain technology is decentralization—the idea that financial transactions should operate outside of traditional banking structures. Critics argue that obtaining a bank charter inherently contradicts this principle, as it places crypto firms under the oversight of federal regulators and central banking authorities.
On the other hand, some industry leaders view bank charters as a necessary step toward mainstream adoption. Regulatory compliance, they argue, will help legitimize crypto in the eyes of policymakers and institutional investors, paving the way for broader integration into the global financial system.
While discussions about obtaining bank charters are gaining momentum, it remains uncertain how many companies will actually move forward with applications. The process is financially demanding, and regulatory uncertainty persists despite the Trump administration’s pro-crypto stance.
US Lawmakers Push for Stablecoin and Crypto Market Structure Bills Amid Growing Industry Interest
At the Digital Assets Summit on March 18, US Representative Ro Khanna, a Democrat from California, expressed optimism that Congress will pass both a stablecoin bill and a broader crypto market structure bill this year. According to Khanna, growing bipartisan support for stablecoin regulation could help bolster US influence in global markets by increasing access to dollar-backed digital assets.
Khanna noted that 70 to 80 Democrats now recognize the strategic importance of stablecoins, particularly as a means of providing access to dollar-denominated assets in developing countries. Stablecoins—crypto assets pegged to traditional currencies like the US dollar—have seen rising adoption across emerging markets due to their stability and ease of access compared to local financial systems.
While the legislative landscape remains uncertain, lawmakers are considering multiple bills, including the GENIUS Act in the Senate, which focuses on regulating stablecoin issuers and ensuring that digital dollar alternatives remain safe, transparent, and accessible.
Beyond stablecoins, Khanna highlighted the importance of a crypto market structure bill, referring to the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill he worked on with former Representative Patrick McHenry.
The crypto industry has long pushed for regulatory clarity, arguing that uncertainty surrounding digital asset classifications and compliance is a significant obstacle to growth. FIT21 aims to establish clearer rules for crypto firms, defining jurisdictional oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Crypto executives have stressed that regulatory clarity is more beneficial than even President Trump’s recent executive order to establish a strategic Bitcoin reserve. While the executive order signaled government recognition of Bitcoin’s value, crypto markets have not responded positively, with Bitcoin prices dipping in the aftermath of the announcement.
Although Khanna is a strong supporter of blockchain innovation, he voiced sharp criticism toward the recent rise of meme coins associated with political figures, particularly President Trump’s Official Trump (TRUMP) token.
Khanna is not the only lawmaker raising concerns about the intersection of politics and digital assets. California Representative Maxine Waters previously warned that Trump’s meme coin could create risks related to corruption and national security.
Additionally, California Representative Sam Liccardo has introduced a bill aimed at preventing elected officials and their families from issuing, endorsing, or profiting from cryptocurrencies. The bill seeks to establish clear guidelines preventing government officials from using their positions to influence financial markets through digital assets.
The controversy surrounding Trump’s meme coin brings attention to a broader debate on the role of crypto in politics, with some seeing digital assets as a tool for financial freedom, while others fear misuse and regulatory loopholes.
What’s Next for Crypto Legislation?
With growing bipartisan momentum, stablecoin regulation appears to have a higher likelihood of passing this year, as lawmakers recognize the need for safe, dollar-backed digital assets in an increasingly digital financial system.
However, the fate of a broader crypto market structure bill remains uncertain. While some lawmakers, including Khanna, see FIT21 as a starting point, others argue that it needs significant revisions before securing widespread support.
As Congress deliberates, the crypto industry will be watching closely. A clear regulatory framework could open the door for greater institutional adoption, while continued uncertainty might drive companies to seek regulatory clarity abroad.
With stablecoins growing in importance, meme coin controversies making headlines, and lawmakers grappling with crypto’s role in the US economy, 2024 is shaping up to be a pivotal year for crypto regulation in Washington.
