Circle Cryptocurrency Firm Applies for a United States Banking License

Circle Cryptocurrency Firm Applies for a United States Banking License

These are exciting times indeed in the global cryptocurrency space as many digital currency-related businesses are expanding their operations with each passing day.
In the latest development, big whale cryptocurrency finance firm, Circle has expressed interests of obtaining a US banking license, in a bid to become a securities exchange.
In a chat with media giants Bloomberg today, the CEO of Circle, Jeremy Allaire made it clear that the firm is poised to become the first player in the nascent world of bitcoin and other cryptocurrencies to achieve such feat, at a time when regulators have unleashed their wrath on several crypto businesses in the nation. In his words:

“To hold reserves with the Federal Reserve, to natively access the central-banking system without intermediaries, to directly settle with other banks in other markets around the world through those networks – that can improve the efficiency of what we deliver, it can reduce the costs.” The Circle Chief Executive also added that:
“The regulators need to figure this out because eventually other banks that they regulate are going to want to hold crypto. They’re going to need to have rules for this. We can be a great guinea pig.”

Circle has been blazing the trail in the blockchain-based digital currency industry in recent times. Back in February, the Goldman Sachs-backed unicorn acquired a US-based cryptocurrency exchange, Poloniex.
Although the real amount of the deal was not disclosed at the time, it, however, is an excellent step in the right direction as the firm hinted back then that it would work with the US Securities and Exchange Commission to register a new firm as a Broker/Dealer.
US crypto regulation is quite strict, and some even consider it draconian. At current cryptocurrency-related businesses are regulated at the state level as money transmitter companies. And they are required to operate in complete adherence to a vast array of regulations that makes it impossible for them to expand to as many states as they may wish.
Of a truth, getting a federal license gives firms much more room to operate, it, however, can be a herculean task for many digital currency firms as there are quite a vast array of regulatory mountains to climb before getting such licensure.
Allaire has also hinted that the firm will get registered with the SEC as a licensed broker-dealer before proceeding with its ‘federal ambition‘.