- Ripple challenges Wall Street with bold push into U.S. banking.
- Senate testimony highlights Ripple’s demand for clear crypto regulations.
- Traditional banks fight back as Ripple eyes Federal Reserve access.
Ripple’s latest regulatory filings have sparked new friction with traditional finance leaders. The blockchain firm has officially applied for a national banking license and a Federal Reserve master account, signaling a direct move into the heart of the U.S. financial system.
The filings, made through Standard Custody, a trust company Ripple acquired in 2023, aim to position Ripple for deeper integration into federal payment infrastructure. This action places Ripple deeper in the race to compete with Wall Street banks that have dominated core financial access.
As a response, the American Bankers Association requested regulators stop issuing crypto companies with bank licenses. The ABA’s position directly refers to companies like Ripple and Circle, which are trying to create regulated entry points into institutional finance.
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Industry enthusiasts perceive this as an act of self-defense by conservative organizations to hamper adoption of crypto at the apex level. The relocation is an indication that old players are feeling uncomfortable with new technology, which is starting to disturb the old systems.
However, Ripple Chief Technology Officer David Schwartz sharply reacted to the opposition. Schwartz said that the old guard banks do not care much about safety and would rather prevent growth.
He said that if given a chance, they would completely eliminate innovation. His comments point to an even wider war of powers between tech-native corporations and their old financial rivals.
The battle indicates the intensity of opposition that Ripple is struggling against in its quest to become part of the financial system’s mainstream. It also casts doubt on young technology companies’ access to prime financial systems.
I often joke that successful incumbents would pause all progress if they could.
— David ‘JoelKatz’ Schwartz (@JoelKatz) July 22, 2025
Garlinghouse Confronts Lawmakers with Clear Demands on Banking Access
On July 9, 2025, Ripple CEO Brad Garlinghouse addressed the Senate Banking Committee during a hearing on digital asset markets. He emphasized Ripple’s work in modernizing banking infrastructure through blockchain-based cross-border payments.
Garlinghouse detailed how Ripple software and XRP enable faster and more affordable transactions and greater financial accessibility worldwide. He explained that XRP is a digital asset tailored to efficient and scalable real-world payments.
He cautioned legislators and said that further uncertainty in regulation is driving innovation and capital out of the country. Referencing Ripple’s legal battle with the SEC, he stressed the importance of establishing banking clarity for digital asset firms.
Garlinghouse challenged Congress to establish stringent legal limits that enable blockchain companies to perform with responsibility in the U.S. He contended that new legislation is necessary to ensure that the country remains competitive in international financial technology.
Regulators Face Key Decision as Battle Lines Are Drawn
Ripple’s move to access Federal Reserve systems represents a significant shift in the crypto-regulation landscape. It challenges traditional banks by seeking the same access to core financial infrastructure.
This adoption places the regulators under pressure to determine how blockchain companies should be treated on the same level. Such a ruling may determine the future of the relationship between digital asset enterprises and the rest of the financial world.
As the ABA presses on postponements and crypto companies beg for fairness, the rift keeps increasing. The Federal Reserve and the Office of the Comptroller of the Currency have now been presented with a choice moment.
They will either allow innovation to enter the financial core or not. The decision may affect the future of digital finance in America for many years.
The move to achieve a higher level of penetration into the core of the U.S. banking system has increased the feud between Ripple and the institutions of Wall Street. With federal regulators still deciding how to act, the war over the future of banking is now getting down to the wire.
Whether crypto-native firms like Ripple are granted equal access or kept at the margins remains to be seen. The results could redefine power in the American financial system.
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