Have you ever had the impression that you’ve been observing a three-dimensional chess match on steroids. That's crypto banking charters in a nutshell. While big banks are already taking action, crypto companies are positioning themselves for new opportunities, and your financial future is at stake. What are they really up to? Let's pull back the curtain.

Regulations Easing: A Green Light?

The big banks are watching. The prior administration encouraged this “regulatory calm” that nearly everyone interpreted as a wink and a nod. This unique environment created a sense that this was the easiest time to get into crypto. Dissolving the National Cryptocurrency Enforcement Team (NCET)? Dropping the SEC's lawsuit against Coinbase? The effect is similar to removing the guard dog’s teeth and letting him run free.

Here's the thing: that doesn't necessarily mean it's a free-for-all. It means the game is changing. You have to know the lay of the land under the new rules. Picture this—you want to build a house, and halfway through the process the building codes get deregulated. Sounds great, right? Even if you’re not living in constant fear of a roof collapse with every rainstorm. Lax regulations can create opportunity for innovation, but also for enormous peril.

Think about the 2008 financial crisis. Deregulation played a huge role. Are we not – whether we realize it or not – just preparing the stage for a rerun of that same act, but starring Bitcoin rather than mortgage-backed securities? It’s a question that ought to give you, and for sure has the big banks, sweating.

Charters: Legitimacy Or Trojan Horse?

Circle, BitGo, Coinbase, Paxos… they all applied for a banking charter. After all, it’s the final and greatest seal of approval in paygo-land financial circles. It’s as close as you can get to a royal seal of approval.

Is it really all about putting more control in the hands of you, the little guy? Then access the world’s largest pool of capital and customers. Or do you like being able to operate under a possibly weaker regulatory regime than other crypto companies have had to abide by?

Anchorage Digital, given that it’s the only US-based crypto exchange with a banking charter, offers an interesting snapshot. They're a custodian for BlackRock's Bitcoin Trust. See the connection? The establishment Conventional finance is embracing crypto with open arms, but it’s a gradual process.

Now, this could be a good thing. That could pave the way for safer, regulated crypto services. The promise of crypto to decentralize power and democratize finance is profound. It runs the danger of being fully co-opted by the same institutions it sought to shake up.

Take Ayesha, a single mother of two who works two jobs but still can’t afford her bills. When done right, crypto banking allows her to access microloans. It saves her money on international remittances and earns her higher interest rates on her savings. Done poorly, it might open her up to fraud, risky investments, and loan sharking. The stakes are incredibly high.

Crypto's Future: Inclusion or Exclusion?

What the Super Bowl ad saga illustrates is the undeniable interconnection of crypto with traditional finance. Banks are exploring crypto. Crypto firms are seeking banking licenses. The lines are blurring. Who benefits most from this blurring?

The big banks, thanks to their already well established armies of lawyers and lobbyists, are perfectly set up to game a regulatory environment. They have the time, talent, and treasure to purchase crypto companies, pour money into blockchain tech, and create the future of finance.

What about the small players? What about the entrepreneurs, the innovators, the everyday users who believe in the power of crypto to create a more equitable financial system? Are they going to be left behind?

The push for responsible regulation is critical. We are all for rules that protect consumers and promote the best, brightest and most innovative companies. That’s important to see — it’s imperative to make sure those benefits aren’t available only to the rich or highly-skilled. We need to do a better job of serving our under-resourced communities, including addressing the lack of diversity in the crypto industry. Where are the women? Where are the minorities? Their voices need to be heard.

Remember that chess game? The next few moves will determine whether crypto becomes a tool for genuine financial inclusion or just another way for the rich to get richer. Don’t let the too big to fail banks starve your community.