Ripple CEO Declares War on Wall Street Lobbyists Blocking Crypto from the Fed

Ripple CEO Slams Wall Street Lobbyists for Blocking Crypto Access to U.S. Banking System

Ripple CEO Brad Garlinghouse has launched a sharp critique against Wall Street banking lobbyists, accusing them of actively obstructing crypto companies’ access to the U.S. financial system. According to Garlinghouse, these powerful financial interests are pressuring regulators and policymakers to block blockchain firms like Ripple Labs from obtaining Federal Reserve master accounts — an essential tool for any institution that directly interfaces with the U.S. central bank.

His remarks come at a time when the line between traditional finance and digital asset innovation continues to blur, as blockchain companies seek legitimacy within the regulated financial ecosystem.

Wall Street’s Gatekeeping: “Hypocrisy at Its Finest”

Garlinghouse described the situation as a double standard, arguing that traditional banks demand equal treatment when it comes to compliance standards, yet deny crypto firms access to the same financial infrastructure.

“You can’t say one and then combat the other,” he said during a recent interview in New York. “It’s hypocritical, and we should call them out for being anti-competitive in that regard.”

In his view, the opposition from banking lobbyists is not about safety or stability, but about maintaining control over the financial infrastructure. Master accounts at the Federal Reserve allow institutions to settle payments directly, eliminating the need for intermediary banks — a privilege that could empower blockchain companies to offer faster, cheaper, and more transparent financial services.

“The irony,” Garlinghouse added, “is that crypto firms are often more transparent and auditable than traditional financial institutions, yet they’re treated like a systemic threat.”

The Long Battle for Banking Legitimacy

Ripple’s case is part of a broader industry effort to gain formal entry into the U.S. banking system. The company has applied for a Federal Reserve master account through its subsidiary, Standard Custody & Trust Company, which it fully owns. If approved, the move would allow Ripple to hold reserves for its U.S.-backed stablecoin, RLUSD, directly with the Federal Reserve — bypassing intermediary banking networks.

At the same time, Ripple has applied for a national banking license through the Office of the Comptroller of the Currency (OCC), a key federal regulator overseeing national banks. This license would allow Ripple to offer custody services, manage fiat reserves, and issue digital assets under a federal banking framework.

Ripple is not alone in pursuing this path. Circle Internet Group, the issuer of the USDC stablecoin, has filed for a national trust bank charter, aiming to hold its stablecoin reserves directly with the Fed and offer institutional-grade digital asset custody services. Meanwhile, Anchorage Digital Bank, which has held an OCC charter since 2021, formally filed for a master account in August 2025.

Despite these moves, no crypto company has yet been granted a master account or full national banking charter this year. All applications remain under review, as regulators weigh potential risks and political pressure from the banking sector.

Regulatory Gray Zones and Institutional Resistance

Under U.S. law, digital asset firms can apply for OCC charters and Fed master accounts, as neither the Federal Reserve Act nor OCC regulations explicitly exclude crypto companies. The challenge lies in discretionary approval — regulators have broad authority to decide who qualifies as a “safe and sound” institution.

Since 2022, the Federal Reserve and OCC have taken a cautious approach, arguing that many crypto companies pose higher risks related to liquidity, custody security, and compliance with anti-money laundering rules. Several applications have been delayed or quietly denied, as regulators seek clearer federal guidance on stablecoins and digital asset custody.

A former OCC official, speaking on background, told HokaNews that “there’s a strong institutional hesitation within Washington. Granting master account access to crypto firms could be seen as legitimizing a parallel financial system — one traditional banks can’t control.”

This dynamic has left crypto companies in regulatory limbo: legal to apply, but unlikely to be approved without significant political will.

Ripple’s RLUSD and the Changing Industry Perception

Despite regulatory resistance, Garlinghouse believes Ripple’s progress in the stablecoin sector has improved perceptions among financial institutions. Ripple’s U.S. dollar-backed stablecoin, RLUSD, launched earlier this year, has gained significant traction in the market — crossing $800 million in market capitalization in late October.

He revealed that sentiment within the banking sector is starting to shift.
“I had meetings yesterday in New York City where banks that wouldn’t even talk to us three years ago are now leaning in, asking how we can partner,” Garlinghouse said. “RLUSD has made that conversation easier because it’s compliant, transparent, and built for institutional use.”

Ripple’s argument is straightforward: granting crypto firms access to the same infrastructure as traditional banks — including Fed master accounts — would increase stability, enhance oversight, and strengthen systemic resilience.

“It’s disappointing to see traditional banks lobby against such progress,” Garlinghouse noted. “A fair and competitive financial system benefits everyone, not just those who’ve been in control for decades.”

The Broader Stablecoin Landscape

The debate over master accounts is unfolding against the backdrop of rapidly expanding stablecoin markets. According to data from CoinMarketCap, the combined market capitalization of U.S. dollar-backed stablecoins now exceeds $160 billion, led by Tether (USDT) and Circle’s USDC. Ripple’s RLUSD, though newer, has emerged as a serious contender, with daily trading volumes surging 34% in the past 24 hours, now representing 18% of its total market cap.

Analysts from Coincu Research suggest that Ripple’s approach — combining blockchain efficiency with regulatory compliance — could set a precedent for future entrants.
“The launch of RLUSD has shown that a compliant, transparent, and blockchain-native stablecoin can attract both institutional and retail interest,” the report stated. “The question now is whether regulators will adapt fast enough to accommodate this evolution.”

Wall Street vs. Web3: A Clash of Ideologies

At its core, the battle between Ripple and Wall Street reflects a deeper ideological divide. Traditional financial institutions prioritize centralized control, legacy infrastructure, and established intermediaries, while blockchain advocates champion decentralization, transparency, and direct access.

Industry observers argue that the lobbying pressure from major banks stems less from risk concerns and more from a desire to maintain dominance over payment rails and settlement systems. If companies like Ripple, Circle, and Anchorage gain direct Fed access, they could process billions in transactions without relying on legacy banks, disrupting long-standing profit channels.

“This is more than a licensing debate,” said an industry analyst at The Block. “It’s a turf war over the future of money.”

What Comes Next

As of late October 2025, none of the pending crypto-related master account applications have been approved. But insiders say momentum is building for reform. Lawmakers on Capitol Hill are reportedly reviewing potential frameworks that would allow licensed digital asset custodians limited access to the Federal Reserve system under enhanced oversight.

Garlinghouse remains optimistic, despite the lobbying headwinds.
“Regulation shouldn’t be used as a weapon to block innovation,” he said. “If the U.S. wants to stay competitive in the digital economy, we have to embrace blockchain companies that play by the rules.”

With Ripple’s RLUSD gaining traction and growing support from institutional partners, the company’s push for banking integration could mark a defining moment for the U.S. digital asset sector — a signal that the era of exclusion may soon give way to collaboration.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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