From Exchanges to Banks: The Crypto Industry’s Fight for Legitimacy
Crypto companies are seeking to become state or national banks in a bid to expand their business under the Trump Administration. However, crypto firms still face institutional pushback as well cybersecurity challenges on their path to mainstream acceptance.
Historically, financial institutions have not accepted cryptocurrencies because they view them as high-risk assets. This is coupled with a regulatory system that has been slow to approve new bank charters. In fact, between 2010 and 2023, US regulators approved only five new bank charter applications per year, compared to 144 per year between 2000 and 2007.
Additionally, controversial figures such as Sam Bankman-Fried, who in March 2024 was convicted of misappropriating customer funds…
