Banks Push Back Against Ripple’s National Trust Bank Bid
Ripple’s application for a national trust bank charter has met staunch resistance from the banking community. Major industry groups, led by the American Bankers Association (ABA), argue that allowing a cryptocurrency firm like Ripple to secure an OCC-issued charter could introduce systemic risks. They are lobbying regulators to block the bid, citing concerns around customer asset protection, regulatory arbitrage and market stability. Ripple CEO Brad Garlinghouse defends the proposal, stating a national trust bank would enable secure crypto custody and expand institutional access. The pushback underscores growing tensions between traditional banks and the crypto sector over regulatory clarity and financial oversight.
Bearish
The banking community’s concerted effort to block Ripple’s national trust bank charter signals heightened regulatory uncertainty for crypto firms. Such pushback may delay institutional adoption of custody services and dampen market sentiment. Historically, approvals of bank charters for crypto entities have driven bullish momentum by validating industry growth. Conversely, strong resistance suggests potential hurdles ahead, likely weighing on XRP and related assets in both the short and long term.