Ripple CEO Brad Garlinghouse Pushes for Fed Master Accounts for Crypto Firms

Ripple’s CEO urges that the company be held to the same regulatory standards as traditional banks, as it awaits a decision on its national charter from the OCC.

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Summary

Brad Garlinghouse, CEO of Ripple Labs, called for cryptocurrency companies to be held to the same regulatory standards as traditional banks, particularly regarding anti-money-laundering and compliance measures. Ripple has applied for a national charter with the OCC and a Federal Reserve master account, aiming to access the U.S. banking infrastructure. Garlinghouse criticized Wall Street’s resistance to crypto firms accessing Fed accounts, framing it as anti-competitive. Ripple’s stablecoin initiative, RLUSD, has also garnered increased interest from banks. Separately, global crypto trading volumes fell 17.5% in September, but open interest reached a record $230 billion.

Terms & Concepts
  • Federal Reserve Master Account: A bank account at the U.S. central bank allowing direct access to payment and settlement systems, typically reserved for licensed financial institutions.
  • Stablecoin: A cryptocurrency pegged to a stable asset, such as the U.S. dollar, designed to minimize volatility and facilitate transactions.
  • Open Interest: The total number of outstanding derivative contracts, such as futures or options, that have not been settled.