Ripple and Circle Eye Bank Licenses as Stablecoin Legislation Gains Momentum

• Ripple and Circle are now applying for national trust bank charters, a sign that the crypto industry is moving closer to the heart of traditional finance.
• This move also comes at a time when regulatory pressure on crypto has started to ease under President Donald Trump’s administration.

In March, just when Donald Trump’s presidency was still fresh, the Office of the Comptroller of the Currency (OCC) softened its stance on how banks can interact with the cryptocurrency industry.

They issued a letter clarifying that national banks and federal savings associations are allowed to engage in certain crypto-related activities.

As Crypto News Flash explained, this includes offering custody services for digital assets, handling specific stablecoin transactions, and even participating in blockchain networks as independent validators.

With growing pressure for clearer regulation in the crypto space, some of the names in the industry, Ripple and Circle, are making moves to align more closely with the traditional financial system.

Earlier this month, Ripple Labs filed an application with the OCC for a national banking license, following in the footsteps of Circle, which submitted a similar application on June 30. As the issuer of USDC, the second-largest stablecoin after USDT, Circle plans to bring its operations under a nationally chartered bank to meet the highest regulatory standards.

Analysts see this as a smart and likely necessary step that not only strengthens Circle’s credibility with regulators but also gives the company improved access to the Federal Reserve’s systems.

Anchorage Digital is currently the only cryptocurrency company that holds a national bank charter, but that could soon change as the industry continues to mature.

The Bigger Picture

In an X post, Ripple’s CEO Brad Garlinghouse shared that if Ripple’s application is approved, the company would operate under both state oversight, through the New York Department of Financial Services, and federal regulation.

He called this a “new (and unique!) benchmark for trust in the stablecoin market,” reinforcing Ripple’s long-standing focus on building secure, reliable, and compliant infrastructure for digital finance.

This dual oversight could go a long way in bringing much-needed trust to a crypto space often seen as volatile and loosely regulated. It would also put Ripple ahead of the curve when it comes to the upcoming GENIUS Act, a landmark bipartisan bill that aims to establish a clear, nationwide framework for regulating payment stablecoins.

The legislation, which passed the Senate with strong support and is now headed to the House, would require issuers to maintain full reserve backing, undergo monthly disclosures and annual audits, and meet strict compliance standards under anti-money laundering laws.

Taking things a step further, Ripple also applied for a Federal Reserve master account. If granted, this would allow the company to hold reserves for its stablecoin, RLUSD, which launched in December 2024 and is now valued at over $517 million, directly with the Fed.

That means faster, more secure issuance and redemption of tokens, without needing to rely on intermediary banks.

Garlinghouse highlighted the importance of this, noting that in a stablecoin market worth more than $250 billion, RLUSD stands out by putting regulation first, something institutional players are increasingly demanding.