Ripple CEO Brad Garlinghouse said at a recent conference that crypto companies should receive the same benefits as traditional financial institutions if they follow the same laws and regulations.
Speaking at DC Fintech Week on Wednesday, Garlinghouse said regulators like the U.S. Securities and Exchange Commission (SEC) were unlikely to revoke their policies following the possible departure of Chairman Paul Atkins or U.S. President Donald Trump, who appointed the agency’s head.
However, he also criticized the disparity between the treatment of crypto companies and traditional financial institutions such as banks.
“One of the things I would ask everyone to do, both journalists and others, is to hold traditional finance accountable, yes, I agree that the crypto industry should be held to the same standard when it comes to anti-money laundering. [Anti-Money Laundering]KYC [Know Your Customer]OFAC [Office of Foreign Assets Control] Compliance: Yes, yes, yes,” Garlinghouse said. “And we should have the same access to the structure as a Federal Reserve master account. “You can’t say one thing and then fight the other.”
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Are Crypto Companies Trying to Be Like Banks?
As the regulatory environment under Trump and the leadership of the SEC appears to be softening digital assets, companies like Ripple have faced the challenge of finding a balance between expanding and maintaining their role in the industry.
Garlinghouse said in July that Ripple had applied for national bank status, following stablecoin issuer Circle, while Coinbase has been seeking national trust company status.
Amid the requests, several US banking groups sent a letter to the Office of the Comptroller of the Currency asking the regulator to postpone any decision. The banks stated that issuing a charter for companies like Ripple or Circle “would raise significant policy and process concerns.”
“It’s been a little disappointing to see some of the traditional banks start to lobby against things like that,” Garlinghouse said Wednesday, referring to the bylaws. “If we want more stability, if we want clear regulation, having a Fed master account is actually a net advantage for that. […] subject to the same regulatory standards as a bank.”
On Wednesday, the US Office of the Comptroller of the Currency (OCC) reportedly approved a charter for Erebor, a financial services company backed by billionaire Peter Thiel. Although likely months before Erebor can begin operations, the move could help fill the need for banks to offer services to businesses and cryptocurrency users.
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