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Circle, BitGo about to apply for bank charters, others may follow: WSJ

Major cryptocurrency firms, including stablecoin issuer Circle and crypto custodian BitGo, are reportedly considering applying for bank charters or licenses.

According to an April 21 Wall Street Journal report citing people familiar with the matter, Circle, BitGo and others are considering applying for some form of banking license. Other firms cited include the publicly traded US-based crypto exchange Coinbase and the stablecoin issuer Paxos.

The US Office of the Comptroller of the Currency granted a preliminary conditional approval for a US bank charter to Paxos in 2021. The report comes as the US continues to reshape stablecoin regulations.

US Federal Reserve Chair Jerome Powell recently said that as digital assets gain mainstream adoption, establishing a legal framework for stablecoins is a “good idea.” Speaking at a recent event in Chicago, Powell recognized that after a “wave of failures and frauds,” the crypto space delivered a consumer use case that “could have wide appeal.”

Related: Stablecoins are powering deobanks

A stable genius

The US House Financial Services Committee passed a Republican-backed stablecoin framework bill earlier in April. The bill approved by the committee is the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act.

This bill is moving forward alongside the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The STABLE and GENIUS bills differ in how they would regulate the stablecoin industry.

The latter was introduced first and made its way past the US Senate Banking Committee in mid-March. While the STABLE Act emphasizes strict federal oversight, the GENIUS Act seeks a more flexible path that includes state and federal regulation.

The STABLE Act enforces a two-year moratorium on issuing collateralized stablecoins backed by self-issued digital assets. It also mandates that stablecoin reserves be held separate from business funds to ensure that customer deposits are not used for operations.

The GENIUS Act would establish a legal framework for stablecoin payments and aims to support US-based stablecoin issuers to reinforce the dollar’s global dominance. The bill also includes stricter rules, such as enhanced Anti-Money Laundering (AML) safeguards, reserve and liquidity standards, and sanctions checks.

Under the GENIUS Act, stablecoin issuers would be considered financial institutions covered by the Bank Secrecy Act and falling under strict AML rules. User verification and reporting of suspicious activity would also be required.

Related: Crypto’s debanking problem persists despite new regulations

Why a bank charter?

The companies cited in the report had not responded to Cointelegraph’s inquiries by the time of publication.

A bank charter potentially would allow crypto firms to operate like traditional lenders, taking deposits and making loans.

Still, crypto firms that obtain banking charters would be subject to stricter reporting and regulatory oversight. One example is Anchorage Digital, a crypto firm holding a federal bank charter that reportedly spent millions to comply with regulations.

Despite this, recent reports indicate that the US Department of Homeland Security’s El Dorado Task Force has reportedly launched an investigation into Anchorage Digital Bank.

The news does not come as a complete surprise. In late March, reports indicated that cryptocurrency and fintech companies were increasingly seeking bank charters to expand their businesses under the Trump administration.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle

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Plaid Cymru leader was ‘turned down’ for meeting with PM, he claims

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Plaid Cymru leader was 'turned down' for meeting with PM, he claims

Calls for a meeting with Prime Minister Sir Keir Starmer have been snubbed by No 10, the leader of Plaid Cymru has told Sky News.

Rhun ap Iorwerth, who has served as leader of the Welsh nationalist party since June 2023, is looking likely to become Wales’s first minister next May, but when he asked to meet with Sir Keir after his election last year, he says he was turned down.

Speaking with Sky News’ political correspondent Liz Bates, Mr ap Iorwerth said he had “never” had a conversation with the prime minister but it was “not because I haven’t tried”.

He added: “When I contacted the prime minister to ask for a meeting, after his election last year, I was turned down and it was passed on to the Secretary of State for Wales.

“People can read into that what they want.

“I’ve spoken very openly about wanting to have a constructive relationship with the UK prime minister.”

The former journalist said in his reporting days he had not interviewed Sir Keir and now, in politics, their “paths had never crossed” but he said he felt it was “important”.

More on Eluned Morgan

“I have certainly asked if we could meet. And that is certainly something that I would still love to happen,” he said.

Mr ap Iorwerth said a conversation would be key because if he became Welsh first minister, there would be “serious negotiations on serious issues around funding for Wales – on investing in infrastructure in Wales, on the future of how we’re able to influence and use our natural resources in Wales”.

“So I want to have that constructive relationship,” he said.

In an apparent nod to current Labour first minister Eluned Morgan, Mr ap Iorwerth said Sir Keir would be in “no doubt” that his loyalty “would always be to the people of Wales”.

He said: “I won’t be pulling my punches in order to save the Labour Party embarrassment.

“I’ll be really laying out what’s in the interest of Wales. And that’s, I think, a fundamentally different relationship. But it has to be, and I want it to be, a constructive one.”

The next Senedd election is May 2026, when voters in Wales will elect 96 members for the first time – an increase of more than 50% from the current 60.

Welsh politics has traditionally been dominated by Labour.

Labour’s grip on Wales sliding?

Welsh Labour MPs have been the largest group sent to Westminster in every general election since 1922 – and the party has been in government in the country for more than a quarter of a century.

But if the polls are accurate, Labour’s long-standing grip on politics in Wales is fading.

Plaid Cymru and Reform UK are running almost neck and neck, while Labour trails significantly.

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Rhun ap Iorwerth: Is the man on the brink of power in Wales ready to govern?

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Rhun ap Iorwerth: Is the man on the brink of power in Wales ready to govern?

Politics has always been unforgiving, but never more so than now.

So, speaking to the man who is on the brink of power in Wales, raises the question of whether he is really ready for what’s he’s taking on.

Plaid Cymru leader Rhun ap Iorwerth is a former journalist so he knows how to present himself, but much bigger challenges are coming, and fast.

At next May’s Senedd elections, he is narrowly on course to become first minister, according to current polls.

Mr ap Iorwerth visits local businesses on Ystrad Mynach high street. Pic: PA
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Mr ap Iorwerth visits local businesses on Ystrad Mynach high street. Pic: PA

But before that he faces the same battle as leaders across the UK – how to beat Reform, who are running his party very close.

It’s not clear he has a different strategy to any other politician, as he condemns their politics as divisive and tries instead to present a positive vision of unity and more public spending.

Maybe he has a better chance than most though as he can at least point the finger of blame firmly elsewhere – Westminster.

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That leads to his second big problem of how to get anything from a Labour prime minister when you lead an opposition party.

In his conference speech he criticised Welsh Labour leader Eluned Morgan for being unable to influence Sir Keir Starmer.

But Mr ap Iorwerth later revealed to Sky News that he’s never even spoken to the prime minister, and when a meeting was requested he was offered the Secretary of State for Wales instead.

If he does become first minister he will have to walk the difficult line of fostering a privately productive relationship while still criticising in public.

Looming over all of this is the question of Welsh independence.

Read more from Sky News:
Corbyn and Sultana have ‘patched things up’ – but what really happened?
The 40 jobs ‘most at risk’ of AI – and 40 it can’t touch

It has been the party’s driving force for a century but it’s now been shelved for at least one term in office.

Mr ap Iorwerth says it’s because they need to lay the groundwork, have a consultation on the process and bring the public with them.

The truth is that the Welsh economy is so reliant on the rest of the UK that separation would be difficult, to say the least.

Figuring out how to keep pursuing their core purpose while acknowledging that reality could become corrosive.

Having said all that, he has a sense of momentum and purpose that many other politicians are lacking, driven by a strong sense of Welsh identity.

If he does get over the line in May, it will be this feeling that propels him, and he will need to draw on it again and again as he faces the tough times ahead.

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US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

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US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

US Senate passes GAIN Act, prioritizing domestic AI and HPC chip sales

The provision in the National Defense Authorization Act could create even more economic pain for the crypto mining industry if passed.

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