Trump's deregulation has paid off! Crypto companies such as Circle (CRCL.US) rob traditional US banking

The Zhitong Finance App learned that, according to reports, cryptocurrency companies are speeding up their entry into traditional US banking to take advantage of the more favorable regulatory environment during US President Donald Trump's administration. Several major players in the digital asset sector, including Ripple, Circle (CRCL.US), and BitGo, have applied for a National Trust Bank license, which will allow them to provide limited banking services without having to obtain a license in every state. Meanwhile, cryptocurrency exchange Kraken is preparing to launch debit and credit cards in the coming weeks, marking its broader shift to the financial services sector.

According to reports, Kraken co-CEO Arjun Sethi said that the company's launch of the credit card was part of the natural process of integrating cryptocurrencies into the financial system, adding that the company expected to launch the credit card before the end of the month.

These steps highlight a major shift. Cryptocurrency companies are not resisting traditional banking systems and are actively seeking deeper integration. The cryptocurrency industry's optimism increased during the Trump administration, in stark contrast to Joe Biden's more cautious or confrontational stance during his administration.

Stablecoin issuer Circle said that obtaining a trust license issued by the US Monetary Commission (OCC) will be an important milestone in connecting digital assets to the existing financial ecosystem. Currently, Anchorage Digital is the only cryptocurrency company with such a national banking license.

Legal experts have noticed a sharp shift in industry attitudes. According to reports, Max Bonici, a partner at Davis Wright Tremaine Law Office, said that cryptocurrency companies that once thought they were not bound by the rules are now demanding clear regulation from regulators.

Although National Trust Banks can protect assets and assist with payments, they are not authorized to issue loans or accept consumer deposits. However, obtaining such a license can streamline operations and improve the ease of access to the financial system by eliminating licensing requirements in various states.

Stablecoins receive attention

As the cryptocurrency industry seeks to expand its banking business, US lawmakers are debating legislation to regulate stablecoins. According to reports, Pillsbury partner Adam Chernichaw said that changes at the legal level may make it easier for stablecoin issuers to enter the US market.

With strong support from the Trump administration, stablecoins are increasingly widely used in transactions and cross-border payments. The proposed Genius Act strengthens regulation by linking these tokens more closely to US Treasury assets. Under the bill, only regulated banks and some licensed non-banking entities are authorized to issue dollar-backed stablecoins.

According to reports, Ripple CEO Brad Garlinghouse confirmed that the company has also submitted an application for a master account with the Federal Reserve, which will allow it to directly deposit reserve funds in the Federal Reserve.

Traditional banking services have become “bastards”

More and more fintech companies are merging traditional banking with cryptocurrency businesses. Retail brokerage firm Robinhood (HOOD.US) generated more than half of its trading revenue last year from cryptocurrencies, and the company plans to launch consumer banking services in the fall. CEO Vlad Tenev emphasized that the company aims to meet the full range of clients' financial needs, including tax and estate services.

London-based Revolut is another fintech company with significant cryptocurrency revenue, and the company plans to obtain a Bank of America license for the long term. Meanwhile, Sebastian Siemiatkowski, CEO of Swedish company Klarna, has indicated his intention to include cryptocurrencies in the company's products.

Large financial institutions such as Bank of America (BAC.US) are also watching the issuance of stablecoins and are awaiting final regulatory guidance.

According to reports, David Portilla, partner at Davis Law Firm, said that compared to the previous administration, the current US government seems more willing to approve bank concession applications.

However, not all cryptocurrency companies consider it essential to obtain a full banking license. Kraken has obtained a state-level license in Wyoming, is currently preparing to launch its financial app, and is not seeking an additional federal license or Federal Reserve master account. Sethi said the company preferred to work with top financial partners rather than directly provide products such as mortgages.