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Several leading crypto companies, including Circle, Coinbase, BitGo, and Paxos, are reportedly planning to apply for banking charters or licenses in the U.S., the Washington Post reported on Apr. 21.
Pro-crypto lawyer John Deaton expressed his surprise at the payments firm Ripple not applying for the banking license. He wrote on X (formerly Twitter) “that it was a matter of time.”
The Washington Post added that the crypto firms are trying to ride the pro-crypto sentiment in the new administration to push their long-term plans. While some firms are trying to obtain banking charters in order to operate like traditional banking institutions, other firms are trying to obtain necessary licenses to offer select services such as stablecoin issuance.
John Deaton, founder of CryptoLaw, is well known for his pro-crypto stance. He also took on Senator Elizabeth Warren (D-MA) as a Republican Party candidate in the 2024 election, in which he repeatedly challenged the Democratic leader's positions on crypto assets. However, Deaton lost the election to Warren.
Though Deaton is surprised at Ripple not going after a banking license, the payment firm is set to acquire the prime broker Hidden Road for $1.25 billion, as reported earlier.
Hidden Road announced on Apr. 17 that its wholly-owned subsidiary, Hidden Road Partners CIV US LLC, has secured approval from the Financial Industry Regulatory Authority (FINRA) to operate as a broker-dealer.
Ripple is also nearing the settlement with the Securities and Exchange Commission (SEC) of its years-long lawsuit over alleged securities violations.
As per Kraken's price feed, XRP was trading at $2.13 at press time, up 3.3% over a day.