Top Banks Lobby Against Ripple, Circle Trust Approval — Fear of XRP Disruption?
The post Top Banks Lobby Against Ripple, Circle Trust Approval — Fear of XRP Disruption? appeared on BitcoinEthereumNews.com. U.S. banking groups are urging regulators to slow down the approval of national banking charters for crypto firms. They argue that companies like Ripple and Circle don’t currently meet the fiduciary standards and shouldn’t yet be granted such privileges. A coalition of major U.S. banking trade associations, including the Consumer Bankers Association, Independent Community Bankers of America, American Bankers Association, America’s Credit Unions, and National Bankers Association, sent a joint letter to the Office of the Comptroller of the Currency (OCC), asking it to halt new banking license applications from several crypto-related firms temporarily. The letter specifically urges regulators to hit pause on national trust bank applications from several crypto-focused firms, including Ripple National Trust Bank, National Digital Trust Co, Fidelity Digital Assets, and First National Digital Currency Bank. This move comes shortly after Ripple Labs submitted its own application for a national banking license just last week. The goal is to oversee its RLUSD stablecoin operations and to gain direct access to the Federal Reserve’s payment system. Circle, the issuer of USDC, the second-largest stablecoin just after USDT, also filed a similar application on June 30, as reported by Crypto News Flash. While such a charter would give them nationwide reach and greater credibility, traditional banks worry it could disrupt the banking landscape, increase money laundering risks, and offer crypto firms unfair regulatory advantages. Trust Banks vs Crypto Firms The banking trade associations argue that national trust banks have historically focused on true fiduciary services, like managing estates and trusts, but many crypto firms, such as those seeking new federal charters, primarily offer digital asset custody and stablecoin reserve management, which don’t qualify as fiduciary work under federal law. They warn that approving such charters would exploit a legal loophole and fundamentally shift the meaning of a trust bank.…
The post Top Banks Lobby Against Ripple, Circle Trust Approval — Fear of XRP Disruption? appeared on BitcoinEthereumNews.com.
U.S. banking groups are urging regulators to slow down the approval of national banking charters for crypto firms. They argue that companies like Ripple and Circle don’t currently meet the fiduciary standards and shouldn’t yet be granted such privileges. A coalition of major U.S. banking trade associations, including the Consumer Bankers Association, Independent Community Bankers of America, American Bankers Association, America’s Credit Unions, and National Bankers Association, sent a joint letter to the Office of the Comptroller of the Currency (OCC), asking it to halt new banking license applications from several crypto-related firms temporarily. The letter specifically urges regulators to hit pause on national trust bank applications from several crypto-focused firms, including Ripple National Trust Bank, National Digital Trust Co, Fidelity Digital Assets, and First National Digital Currency Bank. This move comes shortly after Ripple Labs submitted its own application for a national banking license just last week. The goal is to oversee its RLUSD stablecoin operations and to gain direct access to the Federal Reserve’s payment system. Circle, the issuer of USDC, the second-largest stablecoin just after USDT, also filed a similar application on June 30, as reported by Crypto News Flash. While such a charter would give them nationwide reach and greater credibility, traditional banks worry it could disrupt the banking landscape, increase money laundering risks, and offer crypto firms unfair regulatory advantages. Trust Banks vs Crypto Firms The banking trade associations argue that national trust banks have historically focused on true fiduciary services, like managing estates and trusts, but many crypto firms, such as those seeking new federal charters, primarily offer digital asset custody and stablecoin reserve management, which don’t qualify as fiduciary work under federal law. They warn that approving such charters would exploit a legal loophole and fundamentally shift the meaning of a trust bank.…
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