Fintech and Crypto Firms Push for Bank Charters Under Trump-Era Deregulation

Financial technology and cryptocurrency companies aim to lower costs and gain credibility, while regulators signal support for streamlined approvals.

Fintech and crypto companies are increasingly applying for state and national bank charters to expand their operations and reduce borrowing costs.
The Trump administration's pro-growth regulatory stance has encouraged firms to pursue charters, with regulators emphasizing innovation and expedited approvals.
Despite renewed interest, obtaining a charter remains challenging, requiring significant capital investment and compliance with stringent regulations like anti-money laundering laws.
The number of new bank charters has dropped sharply since the 2008 financial crisis, with only four approved in 2023, but activity is now picking up.
The collapse of Synapse Financial Technologies has prompted proposed regulatory reforms for banks working with fintech partners, highlighting the risks in the evolving financial landscape.