bankingregulation

The American Bankers Association pushed the Office of the Comptroller of the Currency to strengthen oversight of new banking charter applications. The move targets emerging digital asset firms seeking federal banking licenses amid rapid regulatory changes.
In a comment letter submitted today, ABA called for increased transparency and robust safety standards during what the association described as a period of intense financial innovation. The letter emphasized that charter applicants' responsibilities remain unclear because federal and state regulators have not adequately defined frameworks for stablecoin and digital asset activities.
Regulatory Framework Gaps Exposed
The association asserted that proposed amendments to 12 CFR 5.20 require continued deliberation given their significant role in shaping pending rulemakings across multiple agencies. ABA urged OCC to avoid measuring application progress against traditional timelines.
"The OCC must ensure that robust, broadly applicable safety and soundness standards are well understood and upheld during this period of rapid innovation."
Must Read: Banks and Crypto Clash Over Stablecoin Rewards
The full letter stressed the importance of patience, calling on OCC to allow each charter applicant's regulatory responsibilities to come fully into view before advancing applications. This approach directly addresses entities experimenting with unfamiliar operational risks and new business lines.
Ripple's Banking Membership Signals Industry Shift
@ChartNerdTA on X highlighted that the American Banking Association recently urged USOCC to provide stronger safeguards for banking charter applicants while sharing a demonstration of how Ripple transactions are processed.
"$XRP: The American Banking Association recently urged the USOCC to provide stronger safeguards for banking charter applicants.. Whilst sharing a demo on how Ripple transactions are processed. Ripple joined the American Bankers Association as a Platinum Member in June 2024."
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Ripple's Platinum membership status since June 2024 positions the company within traditional banking circles as digital asset regulations take shape. The timing coincides with heightened scrutiny of charter applications from crypto-native firms.
Resolution Planning Takes Center Stage
ABA strongly encouraged OCC to ensure its receivership capacities and related powers adequately address insolvency risks raised by existing and new charter applicants. The focus on resolution planning reflects concerns about institutions venturing beyond traditional banking activities.
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The association recommended prohibiting charter applicants from including "bank" in their names unless they are subsidiaries of banks or bank holding companies that offer full banking services. This naming restriction aims to prevent entities from misrepresenting their service offerings to consumers.
Digital Asset Regulation Remains Undefined
Charter applicants face uncertainty as Congress and federal regulators work to establish clear digital asset frameworks. The ABA noted that many recent applicants pursue business models not readily identifiable under current regulatory structures.
Must Read: Ripple and Zand Forge RLUSD-AEDZ Bridge in UAE
The banking industry represents $25.1 trillion in assets with over 2 million employees, safeguarding $19.7 trillion in deposits and extending $13.2 trillion in loans. These institutions now navigate requests from digital asset firms seeking federal banking charters without fully developed regulatory guardrails.
Check Out: Bitso Deploys Ripple's RLUSD and XRP for Instant LATAM Payments
The OCC's response to these recommendations will shape how quickly crypto-native firms can access federal banking infrastructure while maintaining the safety and soundness standards that underpin the traditional financial system.
#XRP #Ripple #BankingRegulation #OCC #DigitalAssets
3 Key Takeaways:
ABA demands OCC strengthen oversight for new banking charter applicants in crypto sectorRipple's ABA platinum membership highlights traditional banking engagement with XRP ecosystemRegulators face pressure to define frameworks before approving crypto-focused charters

This Article First Appeared on: https://www.cryptonewslive.org/article/xrps-ripple-pushes-banking-regulator-for-charter-safeguards

he Banks Think Stablecoin Interest Is Too Genius
Are the big banks finally worried that their pathetic 0.01% savings rates are being exposed by digital assets, or is the American Bankers Association just looking out for our "safety" again? 🏦🤔 It seems the traditional finance giants have officially sent a frantic letter to the Senate, sounding the alarm on the "GENIUS Act" because they are deeply concerned about how stablecoin issuers are paying out interest. 📝😱
They are claiming there are dangerous "vulnerabilities" in the law, but let’s be honest—it’s probably just a polite way of saying they hate seeing competition that actually rewards its users instead of burying them in hidden monthly service fees! 📉💸
Why would anyone keep their money in a vault that pays pennies when the blockchain is offering a piece of the pie? 🥧🤡✨$ZEC
From an economic perspective, this pushback is a classic example of "incumbent friction" where traditional institutions try to slow down innovative financial instruments using the shield of regulation. 🛡️🎓 $ETH
The ABA argues that the way the GENIUS Act handles interest payments could create systemic risks, but many see it as an attempt to maintain their monopoly over your hard-earned capital! 💼🏛️
By labeling these yield-bearing stablecoins as high-risk, they hope to stifle the growth of decentralized savings alternatives that offer significantly better returns than your local brick-and-mortar branch ever could. 🧱📈
It is a fascinating educational lesson in how laws are often shaped by the fear of losing market share rather than just purely protecting the average consumer's wallet! 📚💰🚀$BTC
So, is the GENIUS Act actually a disaster waiting to happen, or is it just too "genius" for the old-school banking lobby to handle comfortably? 🧠🔥
The truth likely lies somewhere in the middle, but watching the ABA scramble to define "yield" as a "vulnerability" is honestly a masterclass in linguistic gymnastics that should be taught in every business school! 🤸‍♂️🏛️
While they fight to keep the rules in their favor, the rest of us are realizing that the era of accepting crumbs from the banking table is rapidly coming to an end. 🍞🚫
We should all keep a very close eye on these Senate discussions because when the banks start writing "warning" letters, it usually means the little guy is finally starting to get a fair deal somewhere else! 🕵️‍♂️📈💎
#ABA #Stablecoins #GENIUSAct #BankingRegulation