Crypto Firms and Automakers Apply for Bank Charters Under New Policies

Dozens of financial firms have applied for banking charters, including PayPal, Affirm, the three Detroit automakers, World Liberty Financial, and multiple cryptocurrency brokers. The applications come after White House policies that eased oversight and encouraged new bank formation following years of limited new entrants.

A banking charter would let the companies control their own loans and hold additional assets directly. Several firms currently rely on third-party lenders, which limits profit margins and decision speed. National charters also provide federal preemption that overrides some state consumer-protection rules, including certain interest-rate caps.

Banking remains one of the most heavily regulated U.S. sectors because of the influence these institutions exert on consumers, businesses, and the broader economy. The new applicants had previously positioned themselves as alternatives to traditional banks.