Webull returns crypto trading for US users two years after Biden-era shutdown

Webull is reopening crypto trading for users in the United States, two years after shutting it down during its failed push to go public.

The company said trading would resume on Monday for all American users. Webull had quietly relaunched the service for users in Brazil back in June. Now, the U.S. rollout is happening across the board, with full access returning on both mobile and web platforms.

According to Bloomberg, this is Webull’s first step in a wider global push into crypto. The firm’s U.S. Chief Executive Officer, Anthony Denier, called it a “full-throttle” expansion into “everything digital.” In his words, “We can give optionality for customers to manage their wealth and manage their growth.”

Anthony explained that when the platform removed crypto trading, it wasn’t based on user demand. “When we removed crypto from the platform, it was against what our customers were asking for,” he said. “It’s a natural sort of return to what our clients expect.”

The removal happened in 2023, when Webull was aiming to get listed on a U.S. stock exchange. But at the time, regulators under President Joe Biden were cracking down hard on anything related to crypto. That created legal risk around offering these services. Webull eventually backed away from listing plans, and the crypto feature got pulled.

Webull reopens crypto while banks clash with Congress over stablecoin rules

Now that Donald Trump is back in the White House, things are different. The tone in Washington around crypto is no longer as hostile. This has given Webull room to bring back the service without dealing with the same level of regulatory uncertainty.

The company, which currently serves over 24 million customers worldwide, is offering more than 50 cryptocurrencies to U.S. users. These include Bitcoin, Ethereum, and Solana. Anthony said they plan to make crypto trading available in other regions “in the coming months.”

But while Webull is reactivating its crypto engine, Wall Street is trying to get Congress to stop crypto exchanges from doing too much. Bank lobbying groups are angry over what they say is a loophole in the country’s new stablecoin law.

The American Bankers Association, Bank Policy Institute, and Consumer Bankers Association warned lawmakers last week that crypto exchanges could use third-party coins to do what banks now can’t: offer interest on stablecoins.

The problem is tied to the GENIUS Act, a bill passed by Congress in July to govern the $288 billion stablecoin market. The law blocks stablecoin issuers from paying any kind of “yield” to holders. Banks can issue stablecoins now, but they can’t reward customers for holding them.

Exchanges, however, aren’t the issuers; they’re middlemen. That means they can partner with firms like Circle or Tether and still pass on benefits to users.

The banks say this will drive a massive shift of money out of the traditional financial system. A U.S. Treasury report from April said stablecoins could drain up to $6.6 trillion from banks, depending on how much yield gets passed to users.

The bank groups said the risk of losing deposits is especially bad “in times of stress,” and that it would hurt lending across the entire economy.

In their statement, they warned the loophole could lead to “higher interest rates, fewer loans and increased costs for Main Street businesses and households.” That’s the battle right now.

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