XRP News Today: Federal Reserve Removes Reputational Risk Barrier for Banks Engaging with XRP

The Federal Reserve has made a significant decision that could reshape how U.S. banks interact with digital assets, particularly XRP. By eliminating “reputational risk” from its supervisory framework, the Fed has removed a long-standing obstacle that previously deterred banks from engaging with cryptocurrencies. This change is expected to unlock institutional adoption of XRP and other blockchain-based assets in unprecedented ways.

The Federal Reserve’s announcement clarified that reputational risk will no longer be a factor in examination programs for banks under its supervision. Instead, the Fed will focus on more defined evaluations of financial risk, aiming to promote consistency and clarity across the banking system. The Board emphasized that strong risk management remains essential, but banks will no longer be penalized for engaging with crypto-related services based on perception or public opinion. This policy shift allows banks to explore technologies and partnerships that were previously avoided due to reputational concerns, rather than fundamental flaws.

The crypto community responded swiftly to the Fed’s decision. Prominent analyst X Finance Bull declared, “The Fed just took the leash off $XRP,” highlighting the digital asset’s longstanding struggle for institutional recognition. XRP, designed for fast, low-cost cross-border transactions, has been positioned as a global payments solution. Despite its technical benefits, concerns about reputation deterred many banks from adopting it. This policy shift now positions XRP as a viable tool for financial institutions, potentially freeing banks to engage with RippleNet, explore XRP-based on-demand liquidity (ODL) solutions, or even custody the asset directly.

Adding to the intrigue, Arthur Britto, co-founder of Ripple and co-creator of the XRP Ledger, made his first public post on X just after midnight on June 24. He simply posted an emoji, his first message in 14 years. Though cryptic, Britto’s silence-breaking post sent shockwaves through the XRP community. Britto is known for his early statements that XRP was designed to handle global liquidity and that it could one day be valued as high as $10,000 per token. While speculative, his sudden return within hours of the Fed’s announcement was widely viewed as a signal.

With reputational barriers removed, U.S. banks may now seriously consider XRP for practical use cases, including cross-border settlements, real-time treasury flows, and tokenized liquidity operations. XRP’s compliance-friendly nature, speed, and scalability make it a strong candidate for institutions seeking blockchain integration without regulatory headaches. Whether Britto’s emoji was a coordinated hint or a mere coincidence remains unknown. But what’s clear is this: the regulatory environment just became significantly more favorable for XRP. The leash is off, and the world watches what comes next.