Ripple Advocates for American Bank Charter Under New Stablecoin Regulatory Framework
In a groundbreaking move, blockchain-focused fintech firm Ripple Labs Inc. has officially applied for a U.S. national banking license with the Office of the Comptroller of the Currency (OCC) as of early July 2025. This strategic decision follows a similar step taken by Circle Internet Group, another major crypto firm and stablecoin issuer, and marks a significant shift in the stablecoin market.
The application comes amidst the evolving U.S. regulatory landscape, with the recent passing of the GENIUS Act by the U.S. Senate. This bill aims to regulate stablecoin issuers at the federal level, mandating that large stablecoin issuers fall under the oversight of the OCC. By seeking a banking charter, Ripple and Circle are proactively complying with the new regime.
Ripple’s CEO, Brad Garlinghouse, described this move as a "new benchmark for trust in the stablecoin market," signalling enhanced transparency, compliance, and federal and state supervision. Ripple’s stablecoin, Ripple USD (RLUSD), is already regulated by the New York Department of Financial Services, and the banking license would add a significant federal regulatory layer.
The GENIUS Act's goal is to regulate stablecoin issuers to ensure financial stability and consumer protection. By becoming a national bank, Ripple would be subject to stringent oversight on stablecoin issuance and reserves, compliant with the act’s standards, potentially making its operations more transparent and trustworthy in the eyes of regulators and the market.
This move by Ripple is a significant step towards becoming a federally regulated bank that can issue and operate stablecoins within a robust regulatory framework established by the GENIUS Act. The competition in the stablecoin space is intensifying as companies position themselves for a future with tighter oversight and institutional demand.
Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions. The price of XRP, the digital asset developed by Ripple, stood at $2.28 at the time of writing, representing a 3.88% increase over the past 24 hours.
[1] Ripple Labs Inc. Applies for U.S. National Banking License. (2025). The Shib Magazine. Retrieved from https://www.theshibmagazine.com/ripple-labs-inc-applies-for-us-national-banking-license/
[2] Ripple Labs Inc. Aims to Become Federally Regulated Bank with U.S. National Banking License. (2025). The Shib Daily. Retrieved from https://www.theshidaily.com/ripple-labs-inc-aims-to-become-federally-regulated-bank-with-us-national-banking-license/
[3] The GENIUS Act and Ripple's U.S. National Banking License Application. (2025). The Crypto Insider. Retrieved from https://www.thecryptoinsider.com/the-genius-act-and-ripples-us-national-banking-license-application/
- The decision by Ripple Labs Inc. to apply for a U.S. national banking license demonstrates their proactive approach towards compliance with the evolving regulatory landscape, particularly the requirements set by the GENIUS Act.
- With the GENIUS Act aiming to regulate stablecoin issuers for financial stability and consumer protection, Ripple's move to become a federally regulated bank could potentially make its operations more transparent and trustworthy, especially in the eyes of regulators and the market.
- As Ripple positions itself to operate within a robust regulatory framework established by the GENIUS Act, the competition in the stablecoin space is likely to intensify as other companies aim for similar compliance and institutional demand.
