Ripple CEO Brad Garlinghouse has openly criticized Wall Street banking lobbyists, asserting that they are actively obstructing the integration of cryptocurrency firms into the US banking system. He claims these lobbyists are working to prevent companies like Ripple Labs from securing access to the Federal Reserve’s master accounts, which are crucial for any financial institution looking to directly engage with the US central bank.
Garlinghouse’s comments underscore the ongoing struggle between traditional financial institutions and blockchain-based enterprises seeking legitimacy within the established financial framework. Established banks maintain that the crypto sector should adhere to the same stringent standards regarding anti-money laundering and other safeguards against illegal finance that traditional financial entities must follow. However, they seem reluctant to extend the same standards when it benefits them, as Garlinghouse emphasized that the crypto industry should enjoy equivalent access to vital resources, such as a Fed master account.
“It’s hypocritical, and I think we all should call them out for being anti-competitive in that regard,” Garlinghouse stated, highlighting the perceived double standards in the financial industry’s approach to regulation.
In pursuit of greater legitimacy and access to banking infrastructure, Ripple has applied for a Federal Reserve master account through its subsidiary, Standard Custody & Trust Company. This move allows Ripple to manage RLUSD reserves directly with the Fed. Concurrently, the company is seeking a national banking license from the US Office of the Comptroller of the Currency (OCC), which would facilitate its operations within the regulatory framework.
Other crypto firms are also taking steps to secure licenses. Circle Internet Group, for instance, has submitted an application for a national trust bank license to become a custodian for its USDC stablecoin reserves. Anchorage Digital Bank, which has held a national trust bank charter since 2021, formally requested a Federal Reserve master account in late August 2025. This account would permit Anchorage to settle transactions directly with the Fed, thereby bypassing intermediary banks.
Despite these initiatives, no public announcements have been made regarding the approval of these recent OCC charter applications or any master account requests for the aforementioned companies. These applications remain under review, and while US law does not explicitly bar digital asset firms from accessing the banking system, achieving approval appears to be a complex, discretionary process.
Regulators, particularly at the OCC and the Federal Reserve, have voiced concerns regarding the elevated risks associated with liquidity, custody, and compliance in the crypto sector. Since 2022, the OCC has slowed down or denied multiple applications, and the Fed has defended its prerogative to restrict master account access to institutions it considers safe and compliant with federal regulations.
Meanwhile, Garlinghouse has reported that Ripple’s foray into the realm of stablecoin issuance has prompted traditional banks to reconsider their stance. He noted that banks, which were previously unwilling to engage with Ripple, are now more receptive to discussions about potential partnerships. “I had meetings yesterday in New York City, where banks that would not have talked to us three years ago are now leaning in and saying, how could we partner around this?” he remarked.
He believes that granting master accounts to crypto firms like Ripple and Circle would enhance stability, enable better regulatory oversight, and help mitigate risks in the financial ecosystem. “It’s been a little disappointing to see some of the traditional banks start to lobby against things like that,” he added.
On a notable business front, Ripple’s RLUSD has crossed a significant milestone, reaching a market capitalization exceeding $800 million, with a 34% increase in trading volumes over the past 24 hours, accounting for 18% of its total market cap.
