Ripple CEO Brad Garlinghouse highlights the unfair gap between crypto companies and classic banks. According to Ripple’s CEO, regulators are holding crypto companies to higher standards even if they already follow the same rules. Garlinghouse is calling for fair supervision so that all players in the financial system have an equal opportunity to thrive pending Ripple’s decision on a national charter.
Garlinghouse calls on regulators to apply equal standards to cryptocurrencies and banks
Ripple CEO during DC Fintech Week he talked about how regulators treat crypto companies and classic banks differently. Brad Garlinghouse said that cryptocurrency companies like Ripple face more stringent reviews and greater regulatory hurdles, even as they follow the same compliance rules designed to deter crypto crime and protect users, including regulations such as anti-money laundering (AML), Know Your Customer (KYC), and the Office of Foreign Assets Control (OFAC). These are the same rules that regular banks follow. But he said crypto companies often face additional hurdles and are judged more harshly.
He also said that changes in leadership, such as those at the U.S. Securities and Exchange Commission (SEC) or the White House, may not solve the problem unless there is a clear plan for fair and equal treatment. According to Garlinghouse, it’s not about who’s in charge, but about having one set of fair rules for everyone. Ripple’s CEO is calling for the financial ecosystem where cryptocurrencies and classic finance can operate and develop on the same terms.
Ripple awaits a National Charter as the industry puts increasing pressure on regulators
Ripple is still waiting for a decision on the national bank statute, which the company requested in July. If approved, Ripple could lend a hand become more connected to the USA financial system and make it easier for the company to function like a regular bank. But not everyone supports this move. Some U.S. banking groups have asked the Office of the Comptroller of the Currency (OCC) to delay or stop approving charters for digital asset companies.
Granting national bank charters to digital asset companies such as Ripple, according to U.S. banking groups could create political and procedural challenges in the classic banking system.
However, Garlinghouse believes that crypto companies should have the same access to key financial tools as classic banks. Such access, he explains, would include rights to, among others: Federal Reserve Main Account, enabling crypto companies to move funds more seamlessly and participate more fully in the broader financial ecosystem.
Classic banks want to maintain control, while crypto companies like Ripple push for inclusion and fairness. While Ripple waits When making charter decisions, Garlinghouse continues to call for balance and fairness as the keys to success the future of finance.
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