Ripple’s New Bank Charter
Ripple’s CEO Brad Garlinghouse has expressed enthusiasm over the firm’s recent conditional permission from the U.S. Office of the Comptroller of the Currency (OCC) to establish Ripple National Trust Bank. He termed this development as “significant news” for the company. According to reports from U.Today, Ripple, along with several other cryptocurrency enterprises, received this approval, which constitutes a federal bank charter—similar to those held by large traditional banks across the United States.
Regulatory Implications
In a post celebrating this achievement on social media, Garlinghouse highlighted that the approval means their stablecoin will now be fully regulated both federally and at the state level. However, this move has drawn criticism from several prominent U.S. banking associations. These organizations have urged the OCC to delay or reject national trust bank charter requests from cryptocurrency companies, arguing that such charters could unfairly benefit these firms by providing an advantageous regulatory environment compared to established banks.
Industry Response
Specifically, the Bank Policy Institute, which represents a coalition of major banks, has voiced opposition to license applications from Ripple and Circle. In response to this pushback, Garlinghouse utilized his social media platform to defend the crypto sector, asserting that the industry is focused on regulatory compliance and earning public trust. He challenged critics, saying:
“You’ve complained that crypto isn’t playing by the same rules, but here’s the crypto industry – directly under the OCC’s supervision and standards – prioritizing compliance, trust, and innovation to the benefit of consumers. What are you so afraid of?”
His remarks underscore a growing tension between traditional banking institutions and the evolving crypto landscape.
