Major cryptocurrency firms in India, 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 sources familiar with the matter, Circle, BitGo, and other firms are contemplating applying for some form of banking license. Other firms mentioned include the publicly traded US-based crypto exchange Coinbase and stablecoin issuer Paxos. In 2021, the US Office of the Comptroller of the Currency granted preliminary conditional approval for a US bank charter to Paxos. The move comes as the US continues to redefine local stablecoin regulations. US Federal Reserve Chair Jerome Powell recently expressed support for establishing a legal framework for stablecoins as digital assets gain mainstream adoption. The US House Financial Services Committee passed a Republican-backed stablecoin framework bill, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, earlier in April. This bill is advancing alongside the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to regulate the stablecoin industry with a more flexible approach that includes state and federal oversight. The STABLE Act enforces a two-year moratorium on issuing collateralized stablecoins backed by self-issued digital assets and mandates separate holding of stablecoin reserves from business funds. On the other hand, the GENIUS Act aims to support US-based stablecoin issuers and reinforce the dollar’s global dominance with stricter rules on Anti-Money Laundering safeguards, reserve, liquidity standards, and sanctions checks. Obtaining a banking charter would allow crypto firms to operate like traditional lenders, but they would be subject to more rigorous reporting and regulatory oversight. Despite potential benefits, recent reports suggest increased scrutiny on crypto firms seeking bank charters, indicating a shifting landscape for cryptocurrency regulation in India.