As Banking Lobby Protests, a Fed Rule Could Expedite Ripple’s Application
Main Idea
The Federal Reserve's rule could expedite Ripple's application for a national trust bank charter, despite pushback from the banking sector, which may significantly impact the crypto industry if approved.
Key Points
1. Ripple Labs filed for a national trust bank charter with the US OCC on July 2, 2025, aiming to handle its RLUSD stablecoin reserves federally and access a Fed master account.
2. The banking sector, including the Independent Community Bankers of America and America’s Credit Unions, has requested a pause on new crypto trust-bank charters, arguing crypto firms don’t meet existing trust bank standards.
3. If approved, Ripple and other crypto firms could gain full access to the Fed's financial system, building on stablecoin clarity from the GENIUS Act.
4. OCC decisions on the charter applications are not expected until late 2025 or early 2026, coinciding with the EGRPRA review, which happens once every 10 years.
Description
Ripple’s bid for a US bank charter is facing a major pushback from a coalition of banking associations However, Fed documents contain an “emergency clause” that could allow regulators to fast-track an approval This sets up a high-stakes battle between the banking lobby’s protest and a potential regulatory override. Ripple’s quest for a national trust charter reveals intriguing details in Federal Reserve documents . Namely, under the section 12 CFR § 262.3 , it’s stated that the Fed must publiciz...
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