Ripple CEO Brad Garlinghouse said at a recent conference that crypto companies should receive the same benefits as traditional financial institutions when following the same laws and regulations.
Speaking at DC Fintech Week on Wednesday, Garlinghouse said This is unlikely for regulators such as the US Securities and Exchange Commission (SEC) Roll back their policies After the potential departure of Chair Paul Atkins or US President Donald Trump, who appointed the head of the agency.
However, he also criticized the difference 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 otherwise, is to hold traditional finance accountable, yes-I agree that the crypto industry should be held to the same standards around AML (anti-money laundering), KYC (know your customer), OFAC (Office of Foreign Assets Control) Compliance: Yes, yes, yes,” said Garlinghouse. “And we should have the same access structure as a Fed Master account. You can’t say one and then fight the other.”
https://www.youtube.com/watch?v=cl1nv-uxag0
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Crypto companies trying to be like banks?
As the regulatory environment under Trump and the leadership of the SEC seems to have softened on digital assets, companies like Ripple have been challenged to find a balance between expanding and maintaining their role in the industry.
Garlinghouse said in July That ripple has applied for a national bank charter – following the StableCoin Issuer Circle – while Coinbase is pursuing a National Trust Company Charter.
Among the applications, there are many US banking groups sent a letter to the office of the comptroller of the currency asking the regulator to postpone any decisions. Banks claimed issuing a charter to companies like Ripple or Circle “would raise significant policy and process concerns.”
“It’s a little disappointing to see some of the traditional banks start lobbying against things like this,” Garlinghouse said Wednesday, referring to the charter. “If we want more stability, if we want clear regulation, having a fed master account is really a net with (…) being held to the same regulatory standards as a bank.”
On Wednesday, the US Office of the Comptroller of the Currency (OCC) has been reported A charter was approved For Erebor, a financial services company backed by billionaire Peter Thiel. Although it will likely be months before Erebor begins operations, the move will help fill a need for banks to offer services to crypto companies and users.
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