Dozens of Crypto Firms, Automakers Seek Bank Charters Under Trump Push
Updated
Updated · The New York Times · May 27
Dozens of Crypto Firms, Automakers Seek Bank Charters Under Trump Push
6 articles · Updated · The New York Times · May 27
Dozens of companies — including PayPal, Affirm, Detroit’s Big Three automakers and Trump-linked World Liberty Financial — have applied for banking charters to enter the regulated banking system.
Those licenses would let them control the loans they originate and hold assets directly, reducing reliance on third-party banks that can slow decisions and cut profits.
National charters also offer a major advantage: federal pre-emption that can override some state consumer-protection rules, including interest-rate caps.
The applications reflect Trump administration policies aimed at creating more banks after years in which new entrants to the industry had largely stalled.
When Silicon Valley's disruptors become regulated banks, who truly stands to benefit in the end?
Could the new wave of tech-run banks be paving the way for the next financial crisis?
With tech giants becoming banks, will state caps on loan interest rates become a thing of the past?