Leading crypto firms Circle and BitGo are applying for U.S. banking licenses in response to upcoming regulatory changes impacting the stablecoin industry.
As reported by the Wall Street Journal, crypto heavyweights including Circle, BitGo, Coinbase, and Paxos are preparing to operate under federal banking frameworks. This proactive shift comes as U.S. lawmakers advance two key bills: the STABLE Act and the GENIUS Act.
The STABLE Act, approved in April 2025 by the House Financial Services Committee, introduces a two-year moratorium on certain types of stablecoin issuance and mandates the segregation of crypto reserves from business funds. Meanwhile, the GENIUS Act, proposed in the Senate, aims to integrate stablecoin payments into the U.S. economy and support dollar dominance by regulating stablecoin issuers as financial institutions.
If passed, these laws will require stablecoin companies to follow banking-level compliance, including tighter audits and transparency protocols.
For Circle and BitGo, acquiring a banking license means gaining the ability to accept deposits and issue loans — just like traditional banks. However, it also brings increased regulatory scrutiny.
This trend shows how the stablecoin sector is merging with legacy finance, driven by the need for legal clarity and institutional trust.
