Ripped US charter bank license chase Hit a significant obstacle after the independent community of independent community bankers of America, filed a detailed opposition with the company’s American office with currency (OCC). The seven-page letter warns that through the employed stabcoin operation of the Ripple Ripple National Trust Bank (RNTB) Can reduce traditional banking rules, which may increase concept and consumer protection concerns.
Ripple encounters against the bank charter bid
As Reports From XRPBank on X social media, RIPPLE’s ambitions fulfill the fast resistance from the ICBA, to secure a federal truth for its proposed subsidiary RNTB. Sebastian R. In a formal seven-hit opposition letter addressed to Estrada, Director for OCC license, ICBA underlined a series of concerns. Ripple’s operations and banking goals,
ICBA’s Chaif Objection Center proposed to manage reserves for its plan under RantB of Ripple Stablecoin, RLUSDAnd relevant feduble services. While a National Trust Bank is barred from legally deposited, the ICBA argues that RLUSD couild mimics the work of deposits, potentially allows Ripple to bypass installation banking rules.
In the letter, Ripple and XRP have been accused that it is a history of non-transportation Money-refining requirements And securities law. Despite Crypto Payment Company A legal victory over American secondICBA said in its letter that such a track record of regulator conceptuality increased security.
The ICBA also warned that Ripple’s bid for the National Charter Bank license reduces the boundaries between traditional banking activities and digital asset real. For the trade group, there can be such a step Expand activities like bank in Crypto sector The National Trust Bank created charter when without oversight circle.
By urging the OCC to implement strict regulatory investigations, ICBA signed deep reserves to allow blockchain-operated payment company-like blockchain-operated payment company to operate under conservative fideline management. The ICBA concluded its long opposition, saying that the approval of RTNB’s charter could include a non-traditional institution to provide deposit-like services without adequate regulatory supervision, which presents RISCS for consumer protection and integrity of banking gross.
Comprehensive regulatory and industry implications
The US Charter shows the increase in Ripple’s specific case about its bid for bank license, showing the trend of ICBA increasing Ris’s discomfort between traditional financial institutions Towards the integration of stabelines in mainstream banking framworks. The opposition highlighted the debate of an ongoing industry Stablecoin issuer like Ripple The same security measures as deposited banks should be subject to the same safety measures, removing their products can cause work in similer capacity.
ICBA arguments suggest that allowing RNTB as proposed to be operated as proposed can lead to other fintech and blockchain operations capable. The dispute also underlines regulatory tension between innovation and compliance in the digital asset area. Supporting its opposition, ICBA cited previous enforcement operations against RIPPLE, bending US justice department And the Finnken case in which the Crypto Payments Company fined $ 700,000 for failing to register as a money services business and maintained an adequate AML program.
Getty images specially displayed image, chart from traoodingView.com
Editorial process Focus on giving well, accurate and fair content for bitcoinists. We maintain strict sourcing standards, and each page undergoes hardworking review by our team of top technology experts and experienced editors. This process ensures the integration, relevance and value of our content for our readers.
