The evolving regulatory landscape in the United States is prompting major crypto firms to consider deeper integration with traditional finance. Among them is Coinbase, one of the largest cryptocurrency exchanges globally, which confirmed on April 22 that it is “actively considering” obtaining a U.S. banking license.
A Coinbase spokesperson told crypto.news via email, “This is something Coinbase is actively considering but has not made any formal decisions yet.”
The move aligns with earlier comments from Coinbase CEO Brian Armstrong, who remarked that if Coinbase were measured by customer fund volume, it would rank as the 21st largest bank in the country. This underscores the firm’s growing footprint and the potential benefits of transitioning into a regulated financial entity.
More Crypto Firms Eyeing Banking Licenses
Coinbase is not alone in this strategic consideration. On April 21, The Wall Street Journal reported that USDC stablecoin issuer Circle and crypto custody provider BitGo are also exploring full banking licenses. Such licenses would allow these firms to offer traditional financial services—like deposit-taking and lending—under regulatory oversight similar to that of conventional banks.
Anchorage Digital remains the only crypto-native firm to have secured a U.S. banking license to date. CEO Nathan McCauley revealed that the firm invested tens of millions of dollars to meet the extensive regulatory requirements.
Potential Benefits and Challenges
Obtaining a banking license would grant access to several critical benefits, including Federal Reserve protections and Federal Deposit Insurance Corporation (FDIC) coverage. These could significantly bolster customer trust and fund security.
However, the road to becoming a licensed bank is anything but simple. Applicants must undergo rigorous scrutiny, comply with capital and risk management standards, and navigate a complex regulatory framework.
Regulatory Environment Becomes More Favorable
The renewed interest in traditional finance licenses coincides with what many see as a more crypto-friendly U.S. administration. With President Donald Trump back in office, regulatory bodies like the SEC are reportedly adopting a more lenient stance, influenced in part by political appointees sympathetic to digital asset innovation.
Additionally, U.S. lawmakers are reviewing key legislation that could reshape the crypto industry, including the GENESIS Act and the STABLE Act. These bills aim to provide much needed regulatory clarity, which may further encourage crypto firms to comply with traditional banking norms.
Traditional Banks Join the Fray
The intersection of crypto and traditional finance is no longer a one-way street. In February 2025, Bank of America CEO Brian Moynihan revealed that the institution is exploring the launch of its own stablecoin. Just a month earlier, he publicly supported integrating crypto payment systems into mainstream banking services.
With crypto firms looking to become banks and traditional banks venturing into digital assets, the lines between the two sectors are increasingly blurred. If Coinbase and others succeed in obtaining licenses, the crypto banking era could soon begin in earnest bringing new competition, innovation, and challenges to the financial industry.
