Ripple, Circle Face ABA Resistance Over US Bank Licenses
- Lyla Velez
- July 23, 2025
- Policy
- 0 Comments
Key Points:
- Ripple faces opposition from the ABA over national bank licenses.
- XRP lawyer calls move protectionism against innovation.
- Market stakeholders await OCC’s decision on the licenses.
Brad Garlinghouse, CEO of Ripple, criticized the American Bankers Association’s attempt to block bank licenses for Ripple and Circle, calling the move an obstacle to innovation.
The event impacts Ripple and Circle significantly, highlighting tensions between traditional banking and crypto innovations. Immediate opinions from key legal figures signal broader market consequences for the digital asset landscape.
Ripple and Circle are seeking national bank charters to integrate their operations under stringent federal oversight. Ripple Labs, managed by Brad Garlinghouse, applied to the OCC for stronger compliance. The move reflects Ripple’s broader strategic focus, including the XRP token and the new RLUSD stablecoin.
The American Bankers Association (ABA) recently urged the OCC to deny these licenses, citing potential systemic risks. John Deaton, an XRP legal advocate, condemned the ABA’s move as a disguise for anti-innovation sentiment. As Deaton states:
“The ABA’s move is nothing but protectionism and fear of disruption. These are precisely the tactics we saw when banks pushed back against PayPal and online banking. We can’t let innovation be stifled by incumbents.”
The ABA’s actions reflect a longstanding resistance seen with past fintech innovations.
Market transporters are closely monitoring financial, political, and social implications. Ripples in the market could affect trust in innovative cryptocurrencies like XRP and USDC. Institutions maintaining industry clout could feel pressure if the ABA’s recommendations are implemented.
Ripple and Circle’s future strategies are pivotal. The success or failure of current applications for OCC licenses will mark a turning point for fintech firms. Past experiences highlight a potential slow adoption. Observers remain focused on live, industry-wide updates regarding OCC decisions.
Analysts warn of potential disruptions if the OCC aligns with the ABA. Historical trends suggest significant repercussions for fintech operations. The insights reflect ongoing transitions in regulatory frameworks for the burgeoning digital economy.
| Disclaimer: The content on nftenex.com is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions. |
