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- Crypto giants Deutsche Bank and Standard Chartered explore expanding operations in the U.S. amid regulatory changes.
- Leading crypto firms like BitGo, Circle, and Coinbase plan to apply for U.S. bank licenses for stability.
- Anchorage Digital, the only crypto firm with a federal bank charter, faces investigation by Homeland Security.
Apparently, a group of international financial institutions, including both Deutsche Bank and Standard Chartered, are currently considering the possibilities of their further cryptocurrency activities in the United States, WSJ has learned, citing some insiders on the issue.
This came as a result of a recent breakdown in the crypto market in recent years due to the FTX crash and the closure of two crypto-friendly banks. This decision has arisen at a time when the US administration is beginning to focus on developing a friendly environment for cryptocurrencies, which can open new opportunities for further growth.
According to insiders, the banks have yet to go through a formal planning process regarding the matter. Although the details are uncertain, the reaction to such plans is a positive sign. This action shows that incumbent financial players are gradually transforming their attitude toward cryptocurrency and related operations due to the previous reluctance resulting from the high volatility of the digital currency market.
Crypto Firms Seek U.S. Regulation
This started at the time when US President Trump promised to make the US more friendly to cryptocurrencies. He said that the change in regulations would mean the creation of more favourable circumstances that would embrace the use of digital currencies. Consequently, incumbent global banks and new generation crypto firms are thinking about innovative solutions to enter the U.S. market, which can lead to more institutional investors in the crypto sphere.
Some of the leading cryptocurrency companies are also trying to find ways to be more regulated in the United States. The sources also confirmed that the firms such as BitGo, Circle, Coinbase, and Paxos are planning to apply for a charter or license.
These would enable these companies to be approved to operate under the banking laws of the United States, hence enabling them to experience more stability and the opportunity to expand. The fact that new crypto firms are interested in investing in the platform signals rising optimism in the market.
Homeland Security Investigates Anchorage
Anchorage Digital is the only crypto firm that can boast it has the federal bank charter that allows it to function more like a conventional bank. Regulatory compliance has cost the company millions of dollars to satisfy regulatory requirements and placing it in the middle of the U.S financial malaise. Nonetheless, Anchorage is currently under investigation by the Department of Homeland Security’s El Dorado Task Force for associations with financial crimes and money laundering.
However, Anchorage Digital has dismissed the allegations for the following reasons. The company’s spokesman has dismissed the claims as mere rumors, stating that it is not yet clear what this investigation is all about. Thus, the further development of the cryptocurrency sector and the collaboration of both crypto companies and legacy financial institutions will significantly depend on the regulation in the United States in the near future.
