Brad Garlinghouse criticizes Wall Street banking lobbyists for opposing the entry of crypto firms into the US banking system

Source Cryptopolitan

Ripple CEO Brad Garlinghouse has criticized Wall Street banking lobbyists for opposing the entry of crypto firms into the US banking system. He said these lobbyists are working to block companies like Ripple Labs from obtaining access to the Federal Reserve’s master accounts, which are essential for institutions that directly interact with the US central bank. 

Garlinghouse’s statements highlight the continuous conflict between established financial institutions and blockchain businesses as they seek financial system legitimacy.

Traditional institutions argue that the crypto industry should be held to the same standards for money-laundering protections and other illicit-finance safeguards as traditional financial businesses. However, they don’t want to share the same standards for the good stuff. According to Garlinghouse, crypto “should have the same access to infrastructure, like a Fed master account.”

He said, “You can’t say one and then combat the other […] It’s hypocritical, and I think we all should call them out for being anti-competitive in that regard.”

Crypto companies line up for OCC licences and Mastercards

Crypto companies have encountered challenges in obtaining access from the Fed, or even in understanding how it could be granted.

Ripple recently applied for a Federal Reserve master account through its wholly owned subsidiary, Standard Custody & Trust Company, to hold RLUSD reserves directly with the Fed. Around the same time, the company applied for a national banking license from the US Office of the Comptroller of the Currency (OCC).

Additionally, Circle Internet Group has filed for a national trust bank license, which would allow it to act as a custodian for its USDC stablecoin reserves and provide digital asset custody services to institutional clients.  

Anchorage Digital Bank, which has held a national trust bank charter since 2021, formally filed for a Fed master account in late August 2025. A master account would enable Anchorage to settle transactions directly with the Fed, rather than routing them through intermediary banks.  

However, no public decision has been made approving any of these recent OCC charter applications or master account requests for these companies in 2025. The applications are still under review. 

Legally, crypto firms can apply for both OCC national trust bank charters and Federal Reserve master accounts, but approval is not guaranteed and remains highly discretionary. The US law does not explicitly bar digital asset companies from accessing the banking system. 

Instead, the Federal Reserve Act and OCC regulations allow any eligible depository institution to apply.

However, regulators have been cautious, arguing that most crypto firms pose heightened risks related to liquidity, custody, and compliance. The OCC has slowed or denied several applications since 2022, and the Fed has defended its right to limit master account access to institutions it deems safe and compliant with federal oversight. 

Garlinghouse says RLUSD has made things easier

Ripple, which has recently delved into the field of stablecoin issuers, said banks are finally taking them more seriously after years of difficulty, in which the resistance from US regulators made the financial firms reluctant to engage.

“I had meetings yesterday in New York City, where banks that would not have talked to us three years ago are now leaning in and saying, how could we partner around this?” he said.

He said granting crypto firms, such as Ripple and Circle, master accounts will contribute to greater stability, enhanced regulatory oversight, and risk mitigation. “It’s been a little disappointing to see some of the traditional banks start to lobby against things like that,” Garlinghouse added.

Meanwhile, RLUSD has reached a new milestone after surpassing the $800 million mark in its market cap. Trading volumes in the past 24 hours have jumped by 34% for this stablecoin, and currently account for 18% of its market cap. 

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