Cryptocurrency Companies Want More Benefits from Trump: Bank Demand Increased! - Coin Bulletin

Fintech and crypto companies looking to obtain a banking license aim to benefit from the Trump administration's more friendly regulatory approach.

According to a report from Reuters, crypto and financial technology companies are increasing their applications for bank licenses as the regulatory environment becomes more favorable. These steps have been reported by many executives in the industry in the form of more license interviews and applications. However, firms are cautiously optimistic about leadership changes and possible changes in regulatory agencies' policies.

Becoming a bank provides lower borrowing costs and legitimacy, even though it brings tighter regulations for companies. Bank licenses allow firms to accept deposits, which helps reduce capital costs, while there is significant resistance in the crypto community against this situation. This is because crypto firms aim to achieve greater decentralization and access to banking services by avoiding regulatory oversight associated with central banking over time.

What Does Obtaining a Bank License Provide for Crypto Companies?

Cryptocurrency companies are considering the benefits of this step, such as financial advantages and providing credibility. However, despite the increase in applications, obtaining a banking license is still an expensive process. The cost of establishing a new bank can vary from 20 million to 50 million dollars. For crypto companies, this process is filled with high expenses and various legal obstacles, yet the evolving regulatory environment offers hope that banking licenses can be approved more quickly.