Banks goes back in the approvals of the Cristo de Occimo Charter for Ripple and Circle
Traditional banking groups are urging federal regulators to stop the approval process of cryptographic companies that seek national bank accounts, highlighting a growing tension between inherited financial institutions and digital asset players with the aim of integrating into the United States financial system.
A coalition of American banking associations and credit cooperatives, including the American Banqueros Association (ABA), sent a letter to the Office of the Comptroller of the Currency (Occ) on July 21, warning that granting the National Trust Bank charter to companies such as Ripple and Circle could introduce significant operational, political and consumer protection concerns.
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Why Ripple and Circle look for bank licenses
Ripple and Circle are among the most notable digital asset companies that pursue CHARTERS National Trust Bank through the framework of the Western cryptographic letter. These licenses would allow them to operate in the 50 states without navigating with complex state licenses by state while obtaining direct access to the United States Federal Reserve system.
For Circle, the USDC stable issuer widely used with a circulating offer exceeding $ 64 billion, a federal bank license would help solidify its role in the United States payments while administering reservations under a recognized regulatory structure.
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Ripple, taking advantage of the Token XRP for cross -border payments based on blockchain, seeks to expand its regulated financial services operations after recent regulatory clarity for digital assets in the United States
Obtaining these letters would allow these cryptographic companies to offer payments, custody and liquidation services under a unified federal framework while maintaining the characteristic operational flexibility of Fintechs.
Concerns of banking associations
Traditional banks argue that cryptographic companies have potential systemic risks if they integrate too fast in the banking sector. His letter highlights the key concerns:
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Cryptographic companies do not traditionally provide fiduciary services, asking questions about the protection of customer assets within these models.
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Differences in capital reserve structures could expose the financial system to liquidity or solvency risks during periods of high volatility.
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As the cryptographic market recovers with a total market capitalization that is close to $ 4 billion, rapid integration could expose consumers to risks without solid regulatory frameworks.
The associations also emphasized that the rapid monitoring of these applications without a broader public consultation would represent a significant change in the policy of the Occ, probably opening the gates for other Fintech companies that seek a similar treatment.
The impact of the genius law
This debate develops shortly after Genius act The law was signed on July 19, creating the first comprehensive federal framework for the dollar stablecoin regulations in the United States.
While the Genius law provides clear rules for Stablecoin issuers, it limits the operational scope of these companies, which leads to Circle and players similar to persecuting Open Charters to expand their services nationwide while guaranteeing regulatory compliance.
For Ripple and Circle, ensuring the Crypto letter of the West could pave the way to offer loan products, payments and other financial services under a regulated structure, solidifying their positions in the evolving digital finance sector.
Crypto’s integration reaches a turning point
This debate marks a crucial moment for the financial system of the United States, which reflects the growing convergence of digital asset companies with traditional banking.
Crypto is moving beyond his experimental phase, seeking to integrate into the regulated financial system, which has historically been protected by traditional banks. The decision of the West in these applications will establish a precedent on how cryptographic companies operate within the United States, determining whether they can work together with financial institutions established with similar privileges.
The approval of these letters could accelerate the adoption of cryptographic in the banking system, providing credibility to digital asset companies while causing more cryptographic companies and Fintech seek federal banking licenses.
On the contrary, a cautious approach to regulators could prioritize systemic stability and consumer protection, indicating a more gradual integration of cryptography in conventional finances.
The global context and the implications
Worldwide, European regulators to Asia are actively developing Marcos to administer digital assets within their financial systems. The United States, as a leader in finance and technology, has the potential to establish a global standard in the regulation of cryptographic industry.
As Stablecoins such as the USDC obtain adoption in the payment networks of the whole world, the incorporation of these companies within a clear federal regulatory structure could reinforce the strength of the dollar in global markets while guaranteeing stability in digital transactions.
The decision of the West will also influence whether the United States can maintain leadership in innovation of digital assets or risks are left behind as other countries advance with cryptographic regulatory clarity.
Conclusion: a definition decision for US finances
The call of banking groups to stop Crypto’s letters for Ripple and Circle reflects a critical situation in the evolution of US finances. Regulators face the challenge of balance innovation with stability and consumer protection in an industry that is being transformed at an unprecedented rate.
The OCC’s decision on these applications will establish the tone for the future of cryptographic integration within the US banking system., Determining whether digital asset companies can participate in broader financial infrastructure as reliable players.
As the cryptographic industry seeks legitimacy and traditional banks defend their role in the financial system, the next steps of regulators will shape the competitive panorama for years, influencing how consumers and companies are involved with digital finances in the United States.
In a world where digital assets are increasingly intertwined in the fabric of global finances, decisions made will now define the direction of US finance for the next decade.
Writer
@Ellena
Ellena is an experienced cryptographic writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides information about the latest trends and innovations in the currency space.
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