XRP News Today: Federal Reserve Allows Banks to Serve Crypto Companies, Boosting XRP

Federal Reserve Chair Jerome Powell has announced a significant policy shift, explicitly allowing U.S. banks to offer services to cryptocurrency companies and engage in crypto-related activities. This move represents a major breakthrough in U.S. financial policy towards digital assets, paving the way for deeper institutional involvement in the crypto sector, including XRP.

Powell's directive is clear: banks are now free to serve crypto customers, provided they understand and manage the associated risks. This official statement aims to provide banks with the regulatory confidence they have long sought. For years, regulators used "reputational risk" as a vague rationale to discourage banks from servicing the crypto sector. However, the Federal Reserve has now formally removed reputational risk as a factor in its supervisory framework, meaning banks can no longer be penalized or pressured for serving crypto clients due to the industry's controversial past.

This announcement builds on the regulatory reforms initiated in April 2025, when the Fed, along with the FDIC and OCC, rescinded prior guidance that required banks to seek pre-approval before engaging in crypto or stablecoin activities. This move eliminated key bureaucratic obstacles. With reputational risk also off the table, banks are now free to develop crypto-related services without fear of regulatory retaliation. Powell emphasized that the Fed is not against innovation but wants to ensure that any crypto activity pursued by banks is done "safely and soundly." He reiterated that crypto companies operating within legal bounds should never be debanked simply due to optics or external pressure.

Crypto industry leaders, lawmakers, and investors are celebrating the move. Senator Cynthia Lummis called it a victory for financial fairness and innovation. Analysts are already labeling the policy shift as the official end of what was widely dubbed “Operation Choke Point 2.0,” a coordinated effort that had cut off banking access to dozens of legitimate crypto firms. Many assets rose sharply following the news, but the broader implications may favor assets like XRP, which are built for institutional and cross-border use. With banks now able to custody digital assets, provide crypto payment rails, and support tokenized financial products, XRP could benefit from enhanced liquidity, regulatory legitimacy, and widespread adoption.

This policy shift marks a new era of crypto-banking integration. The official position of the most powerful central bank in the world signals openness to crypto, giving U.S. banks both the authority and the incentive to enter the digital asset arena. For XRP and the wider crypto ecosystem, the message is clear: the door to traditional finance is no longer just open, it’s been thrown wide. And with it, a new era of mainstream adoption begins.