Ripple’s push to become a federally chartered crypto bank has hit resistance from some of the most powerful institutions in traditional finance. According to crypto analyst Paul Barron, the Bank Policy Institute (BPI), a lobbying group representing 42 of the largest U.S. banks, has taken steps to block Ripple’s banking license application, citing concerns over regulatory clarity and a rushed public review process. Barron described the development as a sign that Ripple has “banks on the ropes,” signaling that the banking establishment sees Ripple’s rise as a direct challenge to the status quo. The ongoing tension between crypto innovators and traditional banks has now reached a new turning point. BPI’s Pushback: A Signal of Industry Alarm Ripple submitted its application to the Office of the Comptroller of the Currency (OCC) on July 2, 2025, seeking a national trust bank charter. If approved, Ripple would be allowed to offer a suite of regulated services, including custody, stablecoin issuance (through RLUSD), and direct access to the U.S. payment system via a Federal Reserve master account. UPDATE: RIPPLE HAS BANKS ON THE ROPES BPI has just attempted to block @Ripple 's Banking license. $XRP $RLUSD Let's remember who BPI represents: an industry lobbying group. BPI represents 42 of the largest U.S. banks and acts as their policy advocate and lobbying… pic.twitter.com/OOXDy84xe0 — PaulBarron (@paulbarron) July 28, 2025 However, opposition came swiftly . BPI and other major banking associations, including the American Bankers Association, submitted formal objections. They argue that the public was given only 2.5 weeks, from July 16 to August 4, to assess Ripple’s application, which they say is not enough time for a proper review of such a novel and complex proposal involving cryptocurrency operations. Furthermore, critics claim that Ripple’s business model may not meet the legal definition of fiduciary activity required for a national trust charter. Instead of offering traditional fiduciary services like estate or trust management, Ripple’s model centers on digital asset custody, tokenization, and stablecoin payments, raising legal and policy concerns among traditional regulators and banks. Ripple’s Model: Bridging Crypto and Traditional Finance Ripple’s vision is to pioneer a crypto-banking hybrid model that aligns digital innovation with regulated finance. The company argues that as blockchain-based payments become more integral to global finance, institutions like Ripple must be granted full regulatory status to scale responsibly. Its stablecoin, RLUSD, launched in late 2024, has already gained traction with institutions for real-time settlement and liquidity management. Ripple’s application reflects a broader trend of crypto-native firms seeking to operate under traditional banking frameworks, an approach that many view as critical to long-term adoption. Approval of the charter would give Ripple a competitive advantage, cementing its role in the U.S. financial system while setting a regulatory benchmark for similar crypto enterprises. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Behind the Tension: Protecting Market Dominance? Paul Barron’s commentary underscores the deeper narrative: traditional banks may feel threatened by Ripple’s potential to reshape key financial functions. Critics like attorney John Deaton argue that lobbying efforts by BPI are less about safeguarding compliance and more about protecting market share. If Ripple succeeds, it would become one of the first crypto firms to gain direct access to the U.S. financial infrastructure. This could unlock faster, cheaper cross-border transactions, an area long dominated by the same institutions now opposing Ripple’s bid. The battle over Ripple’s banking license is more than a regulatory debate; it’s a clash between financial innovation and entrenched legacy systems. As Paul Barron notes, Ripple’s challenge has placed the banking elite on edge. Whether the OCC approves the application or yields to lobbying pressure will have far-reaching implications. A successful charter would mark a major milestone in legitimizing crypto-financial integration. But for now, Ripple’s vision stands at the crossroads of innovation and resistance, facing scrutiny not just from regulators but from the very industry it seeks to disrupt. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Ripple’s Banking License Update: Attempted Blocking appeared first on Times Tabloid .
