American Bankers Ask Regulators to Slow Crypto Bank Charters, Targeting Ripple’s Expansion
The American Bankers Association (ABA) asked the U.S. Office of the Comptroller of the Currency (OCC) on February 11, 2026 to slow approvals of national bank charters for crypto-focused firms. The ABA cited concerns about custody controls, liquidity safeguards, consumer protections and operational resilience, arguing regulators need more time to evaluate safety standards as blockchain firms move toward core banking functions. The letter frames the request as prudential oversight but also highlights competitive tension: faster settlement, lower costs, and programmable finance threaten traditional banks’ revenue models. The timing coincides with momentum for Ripple and the XRP Ledger — including RLUSD integration and Binance-connected exchange infrastructure — which increase tokenized dollar settlement accessibility. The dispute raises broader strategic stakes about whether the U.S. will integrate blockchain firms into its banking core or see innovation migrate to more receptive jurisdictions. The article notes this is a regulatory timing battle with implications for liquidity, market structure and which institutions will lead global finance. Disclaimer: this is informational and not financial advice.
Bearish
The ABA’s push to slow national bank charters for crypto firms creates regulatory uncertainty that is generally negative for markets tied to the affected projects, especially Ripple/XRP. Slower charter approvals delay on‑ramps to payment rails, reduce expectations for near-term institutional adoption, and can compress demand for settlement tokens like XRP. The letter signals increased scrutiny on custody, liquidity and operational resilience — issues that can raise compliance costs and slow product rollouts. Historically, regulatory headwinds (e.g., past U.S. enforcement actions or delays in approvals for crypto firms) have produced bearish price reactions and reduced liquidity in the short term as traders price in execution risk and slower adoption. In the medium to long term the impact depends on outcomes: prolonged delays could push innovation and listings overseas (negative for U.S.-centric platforms and tokens), while clear, constructive regulation could eventually be bullish by legitimizing the sector. For traders: expect heightened volatility for XRP and related settlement tokens, potential sell‑pressure on news and increased premium on regulatory clarity. Monitor OCC responses, ABA follow-ups, and concrete charter decisions — positive signals (approvals or clear guardrails) could reverse sentiment, while extended delays or stricter requirements will likely keep the market subdued.