Several leading cryptocurrency firms, including Circle and BitGo, are preparing to apply for banking licenses or similar financial regulatory approvals in the United States, according to a report by The Wall Street Journal. The move signals a concerted effort by the industry to forge stronger ties to the U.S. banking system after years of heightened regulatory scrutiny. The crypto industry’s access to traditional financial infrastructure has been severely hindered since the collapse of FTX in late 2022, triggering widespread market panic and regulatory crackdowns. The subsequent closure of crypto-friendly banks like Silvergate Bank and Signature Bank further isolated digital asset companies from traditional financial services. Since then, many crypto firms have faced difficulties finding reliable banking partners, limiting their ability to operate efficiently in the U.S. market. Regulatory pressure has intensified due to concerns over financial stability, fraud prevention, and systemic risk. Companies like USDC stablecoin issuer Circle and digital asset custodian BitGo are seeking official licenses to legitimize their operations and boost trust among regulators, institutional clients and the broader public. Obtaining a banking license would potentially allow these firms to: Direct access to the Federal Reserve's payment gateways, Providing regulated custody and transaction services, Expanding stablecoin issuance and integration with the fiat system, More effectively comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Industry experts say the shift is part of a larger crypto-traditional finance convergence trend as firms pivot from operating outside the regulatory environment to embracing surveillance as a path to long-term survival and growth. While licensing could take months or even years, the applications represent a significant milestone in the crypto sector’s strategy to rebuild its credibility and re-enter the financial mainstream. *This is not investment advice. Continue Reading: Crypto Firms Circle and BitGo Move to Get Banking Licenses in the US! What Does This Mean? Here Are the Details
