Ripple CEO Brad Garlinghouse said at a recent conference that crypto companies should receive the same benefits as traditional financial institutions when following the same laws and regulations.
Speaking at DC Fintech Week on Wednesday, Garlinghouse said it was unlikely for regulators such as the US Securities and Exchange Commission (SEC) to roll back their policies after the potential departure of Chair Paul Atkins or US President Donald Trump, who nominated the head of the agency.
However, he also criticized the disparity between the treatment of crypto companies and traditional financial institutions, like banks.
“One of the things I would ask everyone to do, both reporters and otherwise, is to hold traditional finance accountable for, yes — I agree that the crypto industry should be held to the same standard around AML [Anti-Money Laundering], KYC [Know Your Customer], OFAC [Office of Foreign Assets Control] compliance: Yes, yes, yes,” said Garlinghouse. “And we should have the same access to structure like a Fed master account. You can’t say one and then combat the other.”
Crypto companies trying to be like banks?
As the regulatory environment under Trump and the SEC leadership seems to be softening on digital assets, companies like Ripple have been challenged to find a balance between expanding and maintaining their role in the industry.
Garlinghouse said in July that Ripple had applied for a national bank charter — following stablecoin issuer Circle — while Coinbase has been pursuing a National Trust Company Charter.
Amid the applications, several US banking groups sent a letter to the Office of the Comptroller of the Currency asking the regulator to postpone any decisions. The banks claimed issuing a charter to companies like Ripple or Circle “would raise significant policy and process concerns.”
“It’s been a little disappointing to see some of the traditional banks start to lobby against things like that,” said Garlinghouse on Wednesday, referring to the charter. “If we want more stability, if we want clear regulation, having a Fed master account actually is a net plus to that [...] held to the same regulatory standards as a bank.”
On Wednesday, the US Office of the Comptroller of the Currency (OCC) reportedly approved a charter for Erebor, a financial services company backed by billionaire Peter Thiel. Though likely months before Erebor can begin operations, the move could help fill a need for banks to offer services to crypto companies and users.