Ripple's Chief Technology Officer Criticizes Banking Lobbies Amid Controversy Over Licensing Issues
In a significant move, Ripple, the blockchain-based payment solutions company, officially applied for a national banking charter in the United States on July 2, 2025. This move follows a similar step taken by stablecoin issuer Circle on June 30, 2025 [1][4]. Both companies aim to be regulated as banks, allowing them to issue and manage stablecoins under direct federal oversight, in compliance with the recently passed **GENIUS Act**.
According to Federal Reserve documents and regulatory code 12 CFR § 262.3, once a banking application like Ripple’s is submitted and public notice is given, the Federal Reserve or the relevant Reserve Bank must act within 90 calendar days [2]. This period allows for public comment and internal review. As of July 23, 2025, there has been no official decision from regulators on Ripple’s application; the company is still in the review phase [2].
The applications have faced opposition from traditional banking groups, notably the **American Bankers Association (ABA)**. The ABA argues that national trust bank charters should be reserved for firms engaged in traditional fiduciary activities—something Ripple and Circle do not plan to provide [3]. Despite this pushback, both Ripple and Circle are moving forward, aiming to comply with the GENIUS Act and expand their offerings in the U.S. regulatory environment [3].
If approved, Ripple would be brought under direct federal and state oversight, marking a new benchmark for regulatory compliance and institutional trust in the crypto sector [1]. The banking license would enable Ripple to connect directly to the U.S. payments system, including FedNow, and manage its own stablecoin (RLUSD) with enhanced credibility [1][4]. This could open the door for other crypto firms to seek similar charters, fundamentally reshaping the relationship between the blockchain industry and traditional finance [4].
The outcome of Ripple's application will set important precedents for how blockchain-native businesses can operate within the U.S. banking system, including the scope of regulatory obligations and the definition of “banking” activities for crypto firms [3]. Traditional banks and their advocacy groups are concerned about a potential flood of crypto firms entering the banking sector, which could challenge the existing financial order and regulatory norms [3].
In conclusion, Ripple’s application for a U.S. national banking license is a landmark step in the evolving relationship between blockchain and traditional finance. The decision—expected within a 90-day review period—will have far-reaching implications for regulatory standards, industry competition, and the future integration of crypto firms into the mainstream financial system [2][3]. The outcome will be closely watched by regulators, traditional banks, and the blockchain sector alike.
| Aspect | Details | |--------|---------| | Application Date | July 2, 2025 (Ripple), June 30, 2025 (Circle) [1][4] | | Regulatory Framework | GENIUS Act (July 2025); 12 CFR § 262.3 (90-day review period) [2][3] | | Current Status | Under review; no formal decision as of July 23, 2025 [2] | | Key Opposition | American Bankers Association cites legal gaps, systemic risk, and traditional fiduciary standards [3] | | Potential Implications | Federal oversight, direct Fed access, stablecoin legitimacy, industry transformation [1][4] |
- The application of Ripple, a blockchain-based payments solutions company, and Circle, a stablecoin issuer, for national banking charters has sparked a significant shift in the crypto industry, as they aim to comply with the recently passed GENIUS Act.
- The proposed move by Ripple could potentially see them managing their own stablecoin (RLUSD) with enhanced credibility, connecting directly to the U.S. payments system, including FedNow, if approved.
- The increased presence of crypto firms in the traditional banking sector, as a result of moves like Ripple's, could fundamentally reshape the relationship between the blockchain industry and traditional finance, and challenge the existing financial order and regulatory norms.
- The outcome of Ripple's application will set important precedents for how blockchain-native businesses can operate within the U.S. banking system, including the scope of regulatory obligations and the definition of "banking" activities for crypto firms.
- The crypto news world is abuzz with speculation about the impact of Ripple's application on the finance, business, and technology sectors, as it could open the door for other crypto firms to seek similar charters and foster greater integration of crypto firms into the mainstream financial system.
