42 US banks, including JPMorgan and Bank of America, block Ripple's banking license application.

42 US banks, including JPMorgan and Bank of America, block Ripple's banking license application.

In a significant development in the financial sector, 42 US banks, including JPMorgan Chase & Co. and Bank of America, have collectively blocked Ripple's banking license application. This move comes amidst growing regulatory scrutiny and political pressure on financial institutions. The decision has been met with mixed reactions from the crypto community and financial professionals alike.

Ripple, known for its native digital asset XRP, has been seeking a banking license through the Office of the Comptroller of the Currency (OCC). The company's application, submitted in July 2025, aims to establish a National Trust Bank focused on the use of its stablecoin, RLUSD. The application was led by Ripple's CEO, Brad Garlinghouse, who stated that the goal is to create a structure that brings RLUSD under federal and state oversight [1].

However, the application has faced opposition from a coalition of banks, including JPMorgan Chase & Co. and Bank of America. The banks cited concerns about regulatory compliance and the potential risks associated with Ripple's stablecoin and digital asset activities. The coalition argued that Ripple's application does not meet the necessary standards for a banking license, particularly regarding deposit-taking and lending activities.

The decision by these banks to block Ripple's application has sparked a debate about the future of cryptocurrencies and stablecoins in the financial system. Some industry experts believe that this move could hinder the growth of the crypto sector and its integration into traditional financial markets. Others argue that it is a necessary step to ensure the stability and security of the financial system.

Meanwhile, Ripple has expressed its commitment to regulatory oversight and has established a five-man governance panel to oversee the Trust Bank's operations. The panel includes experienced financial executives and legal leaders, indicating Ripple's dedication to transparency and compliance [1].

The political backdrop of this decision is also notable. President Trump has publicly criticized major banks for their debanking practices, including Bank of America and JPMorgan Chase. He has called for investigations into potential violations of the Equal Credit Opportunity Act and other financial laws [2].

This development underscores the complex relationship between cryptocurrencies, traditional banking, and regulatory oversight. As the crypto sector continues to evolve, it remains to be seen how these regulatory challenges will shape its future.

References:
[1] https://www.cryptopolitan.com/ripple-occ-banking-license-application/
[2] https://nlpc.org/corporate-integrity-project/trump-says-he-was-debanked-by-bank-of-america-jpmorgan-chase/