Cryptocurrency firms are rapidly expanding into traditional banking services in the U.S., driven by a more favorable regulatory environment. Companies such as Ripple, Circle, and BitGo have applied for national trust bank charters, which would enable them to offer a range of banking services. This move is seen as a strategic shift to capitalize on the growing acceptance of digital assets within the mainstream financial system.

Kraken, a prominent crypto exchange, plans to introduce both debit and credit cards by the end of the month, further blurring the lines between traditional banking and cryptocurrency services. Arjun Sethi, co-CEO of Kraken, described this convergence as a “natural” progression, reflecting the industry’s growing confidence in the current regulatory climate. Unlike previous administrations, many in the crypto industry now view the U.S. leadership as supportive of digital asset innovation.

Circle, another key player, sees obtaining a trust bank charter from the Office of the Comptroller of the Currency (OCC) as a crucial step toward integrating crypto into the mainstream financial system. Currently, Anchorage Digital is the only crypto firm with such a charter, allowing it to handle payments and asset custody across all states without needing separate licenses. This status is highly sought after as it provides a streamlined regulatory framework for crypto firms.

The shift towards embracing regulation marks a significant change in the crypto industry. Max Bonici of Davis Wright Tremaine noted that crypto companies, which once aimed to operate outside traditional finance, are now seeking oversight to gain trust and reach. This change is driven by the pending legislation like the Genius Act, which aims to regulate stablecoins more strictly. The law would require that only OCC-approved banks or similar groups issue stablecoins, and back them with U.S. Treasuries.

Ripple has also applied for a Federal Reserve master account to hold reserves for its stablecoin plans. Robinhood, which has earned much of its recent revenue from crypto trading, will offer banking services later this year. Additionally, UK fintech Revolut and Swedish lender Klarna are also exploring deeper moves into crypto-finance.

Even major banks like Bank of America are exploring stablecoins, waiting on clearer regulation before launching their own. However, some players like Kraken do not intend to become full-service banks. Instead, they prefer to partner with existing providers to offer select services without needing a bank license.

The recent appointment of Jonathan Gould as the new head of the OCC has signaled a shift towards pro-crypto policies. Gould’s pro-crypto stance and anti-red tape approach are expected to provide the clarity that crypto firms have long sought, potentially reshaping the U.S. banking landscape.

The U.S. Treasury Department and the Internal Revenue Service (IRS) have removed a controversial crypto broker rule, effective from July 11, 2025. This rule, which was part of the Biden-era regulations, had no legal force or effect after its removal from the Code of Federal Regulations. This move is seen as a step towards creating a more crypto-friendly environment, allowing crypto firms to operate more freely within the banking sector.

The GENIUS Act, which reshapes stablecoin regulations, is another significant development impacting U.S. markets and global fintech startups. This act is expected to have far-reaching implications for crypto adoption, as it provides a clearer regulatory framework for stablecoins. The act aims to foster innovation while ensuring consumer protection, making it easier for crypto firms to integrate banking services.

The Trump administration’s push for crypto-friendly regulations and laws has also played a significant role in this shift. The administration’s efforts to make the U.S. the world capital for crypto have included the establishment of a strategic reserve of cryptocurrencies. This bold move signals the U.S. government’s commitment to embracing crypto, further encouraging crypto firms to explore banking opportunities.

Coinbase’s partnership with Perplexity AI to integrate crypto services is a testament to the growing collaboration between traditional financial institutions and crypto firms. This partnership aims to leverage AI to enhance crypto services, providing a more seamless experience for users. The collaboration is expected to set a new benchmark for crypto integration in the banking sector.

The OCC’s clarification that U.S. banks can hold and trade cryptocurrencies on their behalf has also paved the way for crypto firms to enter the banking sector. This guidance provides a legal framework for banks to engage in crypto activities, making it easier for crypto firms to partner with traditional financial institutions.

In conclusion, the friendlier regulatory environment in the U.S. has created new opportunities for crypto firms to dive into banking. The appointment of Jonathan Gould as the new OCC chief, the removal of the controversial crypto broker rule, the GENIUS Act, and the Trump administration’s pro-crypto policies have all contributed to this shift. As crypto firms continue to explore banking opportunities, the integration of crypto services in the traditional financial sector is expected to accelerate, fostering innovation and growth in the industry.