According to a Reuters report dated March 18, industry insiders are said to see this as an opportunity for crypto companies to gain legitimacy in regulations and expand the market. Such applications have historically been receiving long-term approval of regulatory bodies, but legal experts have seen an increase in interest recently.
“We are currently working on several applications,” said Alexandra Steinberg Barrage, a partner at the law firm Troutman Pepper Locke, which was quoted by Reuters. But Locke said that with the administration’s appointment of new bank regulators, many companies feel cautiously optimistic even when enthusiasm is built up.
The status of the National Bank allows crypto companies to reduce borrowing costs by accessing deposits, increasing reliability and creating new business opportunities. “It makes sense that by applying for the charter, they are ahead of the curve and gain reliability and capital at a lower cost,” Hunton Andrews Carse partner Carleton Goss told Reuters.
According to the report, there has been little historical approval for the bank charter. US regulators only allowed four people in 2023. Between 2010 and 2023, there were only five per year average approvals.
Following the news, many crypto industry netizens are unhappy with the move.
Cedric Bee said, “Bitcoin will not become a bank that is about to become a bank.
Another user named Mooseyb17 said, “No!
However, many within the crypto community believe this will help adopt cryptocurrency.