Ripple CEO Demands Equal Regulatory Footing for Crypto & TradFi

Introduction

Ripple CEO Brad Garlinghouse used DC Fintech Week to urge “parity” in how regulators treat traditional finance (TradFi) versus crypto companies, arguing firms like Ripple that follow AML, KYC, and OFAC compliance should receive the same benefits as banks. He specifically called for equal access to infrastructure such as a Federal Reserve master account and said Ripple is willing to be “held to the same regulatory standards as a bank.” While noting it’s unlikely the SEC’s posture would swiftly change even if leadership does, Garlinghouse criticized the ongoing disparity that rewards banks while limiting compliant crypto firms. (Cointelegraph)

Garlinghouse confirmed Ripple has applied for a national bank charter with the OCC—mirroring moves by Circle—while Coinbase has sought a National Trust Company Charter. The push has met resistance: U.S. banking groups asked the OCC to delay crypto banking charters, claiming they raise policy concerns. Garlinghouse called that lobbying “disappointing,” arguing that granting charters and Fed master account access would improve stability, clarity, and safety in U.S. crypto regulation. 

In a related signal, the OCC reportedly approved a charter for Erebor, a Peter Thiel–backed financial services firm, potentially opening the door for banks to better serve crypto companies and users. If operationalized, such moves could narrow the gap between TradFi and digital asset institutions, fostering clear rules while maintaining robust AML/KYC standards. The broader takeaway: equal rules and equal access could accelerate institutional crypto adoption without compromising compliance. 

Background

Ripple CEO Brad Garlinghouse is urging U.S. policymakers to treat compliant crypto companies on par with traditional finance (TradFi) institutions. Speaking at DC Fintech Week, he said firms that meet Anti-Money Laundering (AML), Know Your Customer (KYC), and Office of Foreign Assets Control (OFAC) standards should receive the same regulatory benefits as banks—most notably access to a Federal Reserve “master account.” Garlinghouse added that Ripple is willing to be “held to the same regulatory standards as a bank,” but argued it’s inconsistent to demand bank-level compliance while denying bank-level access to infrastructure. His comments arrive as Ripple awaits a decision from the Office of the Comptroller of the Currency (OCC) on its application for a national bank charter, a move that mirrors efforts by other major crypto firms to integrate more deeply with the U.S. financial system.

Why a bank charter and a Fed master account matter

A national bank or national trust bank charter from the OCC allows limited-purpose banking—such as asset custody, fiduciary services, and trust activities—under federal oversight. This can streamline how crypto companies settle payments and manage reserves, reduce reliance on intermediary banks, and signal higher regulatory rigor to institutions and consumers. Multiple outlets have confirmed Ripple’s charter push and its parallel application for a Fed master account that would provide direct connectivity to Fed payment rails and permit custody of stablecoin reserves at the central bank via its Standard Custody affiliate. These steps align with a wider industry shift as Circle and others pursue similar charters, and as Congress advances stablecoin legislation like the GENIUS Act to clarify federal oversight and reserve standards for large issuers. (Reuters, American Banker, The Defiant)

A Fed master account is especially consequential. It gives a financial institution direct access to the Federal Reserve’s payment systems to clear and settle transactions without relying on correspondent banks, improving speed, cost, and resilience. However, these accounts have been difficult for nontraditional institutions to obtain. Custodia Bank—chartered at the state level in Wyoming as a Special Purpose Depository Institution (SPDI)—sued the Federal Reserve after being denied a master account and lost at the district court level; its case underscores that master account access remains a high bar even as policy shifts.

The policy backdrop: parity, stability, and market structure

Garlinghouse’s parity argument is resonating as Washington signals more openness to regulated digital asset banking. The OCC recently granted a national charter to Erebor, a new firm backed by Peter Thiel, which could help bridge services for crypto companies and startups as it ramps toward operations. While Erebor’s conditional approval doesn’t guarantee Ripple’s outcome, it illustrates a pathway for digital asset–aligned banks under federal oversight. At the same time, bank industry groups have urged caution on crypto bank charters, citing policy and process concerns—highlighting an ongoing debate between competition, safety-and-soundness, and innovation.

If Ripple secures both an OCC charter and a master account, it would mark a milestone in the convergence of crypto and TradFi—especially for its RLUSD stablecoin strategy—potentially enabling direct reserve custody at the Fed and near-instant settlement. Even without immediate master account access, an OCC charter could still strengthen compliance, enhance institutional partnerships, and improve payments interoperability within existing bank-controlled networks. With the GENIUS Act moving forward and firms like Anchorage Digital already operating with a national trust charter, the U.S. may be entering a more rules-based phase for crypto market structure—one that rewards robust compliance (AML/KYC/OFAC), clear audits, and strong risk management while expanding access to critical financial infrastructure.(Reuters, American Banker, The Defiant, Cointelegraph)

Key terms explained (quick guide)

• AML (Anti-Money Laundering): Laws and controls designed to detect and prevent illicit finance, including transaction monitoring and reporting.

• KYC (Know Your Customer): Processes to verify customer identity, assess risk, and comply with sanctions and anti-fraud requirements.

• OFAC: A U.S. Treasury office that administers economic and trade sanctions; financial institutions must screen and block prohibited transactions.

• OCC (Office of the Comptroller of the Currency): The U.S. regulator that charters, regulates, and supervises national banks and federal savings associations (and issues national trust charters).

• National trust bank charter: A limited-purpose national bank license focused on fiduciary and custody services (not full deposit-taking powers), useful for digital asset custody and stablecoin reserve management.

• Fed master account: An account at a Federal Reserve Bank granting direct access to Fed payment systems; considered a “gold standard” for settlement efficiency and risk reduction.

• GENIUS Act: A U.S. Senate bill advancing a federal framework for payment stablecoins, including reserve, supervision, and oversight provisions—widely seen as a catalyst for bank-grade compliance in the sector.