Circle, BitGo about to apply for bank charter, others may follow: WSJ
Major cryptocurrency firms, including Circle and BitGo, are considering applying for bank charters or licenses. Other firms involved include Coinbase and Paxos, which previously received preliminary approval for a bank charter. The US is reshaping stablecoin regulations, with Federal Reserve Chair Jerome Powell advocating for a legal framework due to the mainstream adoption of digital assets. The US House Financial Services Committee passed the STABLE Act, emphasizing strict federal oversight, and the GENIUS Act, which offers a more flexible regulatory approach. The STABLE Act imposes a two-year moratorium on collateralized stablecoins backed by self-issued digital assets and mandates separate reserves for customer deposits. The GENIUS Act includes stricter AML safeguards and classifies stablecoin issuers as financial institutions under the Bank Secrecy Act. Obtaining a bank charter would allow crypto firms to operate like traditional banks but would subject them to stricter regulations.
