Many fintech and cryptoactive companies are trying to expand their scope and legally operate as banks by leveraging governments that recognize themselves as more open and aggressive towards the cryptocurrency and the digital age. This new opportunity hopes that businesses will overcome the stages of obtaining licenses for regulatory stiffness.
According to Reuters, banking license concessions have increased significantly, reflecting a positive evolution. It should be noted that at the end of January, the same media reported a request to a group of lawyers who urged regulators to simplify the approval process for the creation of a new bank. In their letter, they insisted it. Bureaucratic obstacles created “barriers of entry that are almost impossible to intrude.”.
However, the sources cited this time provide a change in perspective on the issue. An example is that Alexandra Steinberg Berge, a partner at law firm Troutman Pepper Rock, pointed out. The requests are not booming yet, but we’re working on some of them. “Our clients are cautiously optimistic and we hope that the situation will stabilize,” the legal expert said.
Barge, along with other lawyers, said that between 2010 and 2023, on average, five new banking licenses were approved. In contrast to 144, which was approved between 2000 and 2007. Many of the rejections are because low interest rates have affected profits, reducing the appeal of banking activities.
Acquiring a bank’s license offers benefits such as access to capital at a lower cost, greater legitimacy to users, and the possibility of promoting competition in the industry. Promote customer service in marginalized areas. However, this also means expanding regulatory control. In this regard, Carlton Goss of Hunton Andrews Kurt Farm points out that “companies can reduce operating costs when relying on deposits.”
The truth is that there are expectations that the Trump administration will promote. More favorable regulatory schemes for corporate growthmay encourage the acquisition of a banking license. Nathan Stovall of S&P Global Market Intelligence highlights that the new Trump-appointed regulators focus on innovation and technology that send positive signals to fintech.
During the recent cryptocurrency summit at the White House, the US President underscored the end of what he described as “a federal bureaucratic war against cryptoactive.” Treasury Secretary Scott Bessint joined the Biden administration in criticism. Ensuring new management teams do not pursue the industry We praise the creation of a strategic cryptocurrency reserve.
The increased flexibility in regulations is also reflected in the latest decision by the Secretary of Currency (OCC) that allows US banks to protect cryptoactive and participate in stable activities without the need for prior approval.
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