In 2023, U.S. regulators greenlit just four new bank charters—a far cry from the 144 approved annually between 2000 and 2007, according to S&P Global.
Now, in 2025, financial technology and crypto firms are seizing a perceived opportunity.
With the Trump administration back in power, viewed as more welcoming to their industries, these firms are pushing to secure state or national bank charters.
A Friendlier Regulatory Landscape
The numbers tell a story of scarcity. From 2010 to 2023, regulators averaged only five new bank charters per year. But the Trump administration’s return has sparked optimism.
Crypto and fintech firms see a deregulatory shift on the horizon, driven by Trump’s newly installed regulators who prioritize innovation and technology.
“We have seen a lot more interest. We are working on several applications now,” Alexandra Steinberg Barrage, a partner at Troutman Pepper Locke, told Reuters.
She noted that clients are “cautiously optimistic,” awaiting clarity as new appointees settle into banking agencies.
Nathan Stovall, director of financial institutions research at S&P Global Market Intelligence, added historical context:
The message is clear: a perceived industry-friendly stance could streamline a process long bogged down by red tape.
Why are Crypto Firms Chasing Banking Charters?
Why are crypto firms so eager? It boils down to two words: cost and credibility.
A bank charter lets firms tap into customer deposits, slashing borrowing costs significantly.
Carleton Goss, a partner at Hunton Andrews Kurth handling three such applications, told Reuters in a March 18 report:
Beyond savings, a charter lends legitimacy—a precious commodity for crypto companies often battling public skepticism. That credibility could unlock new customers and broader market opportunities.
The potential payoff justifies the effort. Setting up a bank costs between $20 million and $50 million, according to legal sources cited by Reuters.
It’s a hefty investment, but one that could redefine how these firms compete.
The road to a charter isn’t smooth. Beyond the $20 million to $50 million price tag, firms face stringent regulations like anti-money laundering laws and the Bank Secrecy Act.
The approval process can stretch over years, testing patience and resources. Recent events underscore the scrutiny: after the 2024 collapse of Synapse Financial Technologies, a bank-fintech go-between, regulators propose tougher rules for banks partnering with fintechs, per Reuters.
Crypto applicants could encounter similar hurdles. Compliance is non-negotiable.
Regulators demand robust capital reserves and airtight operations, making the journey as challenging as it is costly.
A Shifting Banking Sector Under President Trump
Success could ripple across the industry. The U.S. boasts over 4,500 banks in 2025, per S&P Global, though mergers are expected to trim that figure.
New crypto-backed banks could inject fresh competition, spurring innovation—think novel financial products or enhanced consumer options.
But it’s a gamble. Not every applicant will cross the finish line. The market, however, awaits proof of concept.
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