With the debate and coverage surrounding the Big Beautiful Bill that has continued its bruising journey through both houses of Congress dominating business headlines and media coverage, crypto investors might feel that issues pertaining to the sector have been relegated to the back burner. This could not be further from the truth, as even in the BBB there had been potential conversation of inclusion of an amendment to address the taxation issues related to crypto miners and stakes. Even though this amendment, proposed by Senator Lummis, was not ultimately included in the bill itself, the fact that this crypto taxation issue has made it to such high levels of debate should be seen as positive for potential future tax alterations.

As the crypto landscape continues to evolve and become part of the ongoing policy conversation in the United States, as well as in other nations, it is paradoxically also a time for some investors that might feel like crypto issues are receding from the headlines. Geo-politics and political debates do tend to attract attention and focus at the expense of every other issue, but let’s take a look at two major developments that crypto investors might have overlooked during this busy period for busy and political news.

Circle and Ripple Becoming Banks

In addition to the rapid entrance by TradFi institutions across the globe into the blockchain and cryptoasset space, and these efforts have been substantial in nature, two of the largest crypto native firms in the world are making moves to enter the banking sector. Following a highly successful IPO, which in turn follows years of proving itself to be a stablecoin issuer willing to work with regulators and policymakers, Circle has applied for a national trust charter to operate under the name First National Digital Currency Bank, N.A. If approved by the OCC this bank would both oversee the management of reserve assets back stopping USDC as well as offering digital asset custody services to institutional customers. In addition this charter would help Circle fulfill expected requirements of the GENIUS Act.

Ripple, which recently issued the RLUSD stablecoin to expand existing cross-border payment solutions, has also submitted an application for a national banking license to the OCC. Although currently regulated by the NYDFS, the OCC application – if approved – would enhance the reporting, transparency, and compliance requirements for both Ripple and its native stablecoin. Interestingly the application for a national banking license occurred almost simultaneously with the announcement that Ripple was dropping its appeal against the SEC related to the long running legal dispute between the firm and the SEC.