A March 18 Reuters report suggests crypto firms see applying for national bank status as a way to gain regulatory legitimacy and expand their markets. While historically slow, legal experts note rising interest, with Alexandra Steinberg Barrage of Troutman Pepper Locke confirming multiple applications in progress.

National bank status could lower borrowing costs, enhance credibility, and create new business opportunities for crypto firms. Carleton Goss of Hunton Andrews Kurth said firms aim to gain credibility and cheaper capital by securing a charter. However, obtaining approval is challenging—only four charters were granted in 2023, compared to an average of five per year from 2010-2023.

Reactions are mixed. Some crypto supporters oppose the move, arguing it contradicts decentralization, while others see it as a potential game-changer that could drive regulatory clarity and adoption.