“Financial Technology and Crypto Firms are increasingly Apply for State or National Bank Charters, Despite The Community’s Historical Resistance to Centralized Banking.”, – WRITE: www.coindesk.com
“We have Seen A Lot More Interest. We are work on several Applications now,” Alexandra Steinberg Barrage, A Partner at Law Firm Troutman Pepper Locke, Told Reuters. However, FIRMS Are Being “Cautiooously Optimistic” as Regulatory Agency Leadership Changes Unfold.
Become A Bank Brings Stricter Regulatory Oversight, But It Can Reduce Borrowing Costs and Enhance Legitimacy. Bank Charters Allow Firms to Lower Their Cost of Capital by Accepting Deposits, Yet Accessing TESE IS A MAJOR Point of Contention in the Crypto Community.
Various Cryptocurrency Firms Have, Over Time, Resisted Become Banks Over the Regulatory Oversight Associated with The Move, Choosing Insthead to Follow The Industry ande Access to Financial Services to Unbanked or Underbanked Individuals.
Cryptocurrency Firms, Including Paxos, Anchorage, and Protego Have Fedrally Regulated Crypto ‘Banks’ After Securing A Federal TRUST CHAERTERTORUHTHERULTERURUGH The US OFFER. (OCC). Kraken and Avanti Have Secured Special Purpos Depository Institution Charts in Wyoming, Making Them State-Regulated Crypto Banks.
Historically, New Bank Charters Have Been Rare. Between 2010 and 2023, regulators Approved an average of Only Five Annaly, Compared to 144 per year year from 2000 to 2007, accounting to S&P Global.
Applications Dwindled Due to Low Interest Rates, Profitability Concerns, and Regulatory Hurdles. The Federal Deposit Insurance Corporation (FDIC) and Federal Reserve Officials Have Support for Streamling The Process. However, Setting Up A New Bank Remains Expensive, With Costs Ranging From $ 20 Million to $ 50 Million, Accounting To The Report.
Read More: Crypto Bank Sygnum Gets Unicorn Status with $ 58m Round
