ICBA Opposes Ripple Trust Bank: “7 Pages of Saying We Are Scared of XRP”

Key Points

1. The ICBA submitted a seven-page letter to the OCC on August 4, 2025, opposing Ripple's application for a national trust bank charter for its subsidiary Ripple National Trust Bank (RNTB).

2. The ICBA argues that RNTB's activities would violate the National Bank Act by acting as a de facto deposit-taking institution and offering RLUSD to retail users.

3. The ICBA claims stablecoins like RLUSD pose risks to banking system stability by potentially incentivizing capital flight from traditional deposits, referencing a Treasury report estimating $6.6 trillion could move to stablecoins.

4. The letter also expresses discomfort with Ripple's past issues with the SEC and FinCEN, and urges the OCC to reject Ripple's trust bank charter to prevent crypto assets like RLUSD from dominating the banking system.

5. The ICBA's opposition is seen as a preemptive strike against XRP and RLUSD in banking, reflecting established institutions' view of XRP's expanding role as a challenge.