Expanding its reach: Ripple attempts to acquire a U.S. bank charter for broader operations
In a significant shift for the digital currency landscape, the United States is witnessing a surge in interest in stablecoins, following the recent passage of the **GENIUS Act** in the Senate on June 17, 2025. This groundbreaking legislation establishes the first-ever federal regulatory framework for "payment stablecoins" and their issuers, paving the way for clear rules and increased regulatory clarity.
The GENIUS Act, now under consideration in the House of Representatives, defines "permitted payment stablecoin issuers" (PPSIs) who can be regulated at either the federal or state level. It also allows for state-only regulation, offering a flexible approach to stablecoin issuance and supervision. The Act aims to provide a robust regulatory framework, permitting qualifying foreign issuers to offer stablecoins in the U.S. under comparable regulatory standards.
This legislative advancement has sparked a flurry of activity among crypto firms, who are seizing the opportunity to operate under the new rules. One such company is Ripple, which has applied for a U.S. banking charter with the Office of the Comptroller of the Currency (OCC). If granted, Ripple would be subject to federal and state regulation, with the New York Department of Financial Services overseeing its stablecoin, RLUSD, which was launched last year. Ripple has also applied for a Master Account with the Federal Reserve, a move that would allow it to hold RLUSD reserves directly with the Fed, enhancing the stablecoin's security and credibility.
Another player in the stablecoin market, Circle, the issuer of the widely used USD Coin (USDC), is pursuing a similar banking charter, planning to establish the First National Digital Currency Bank, N.A. This would enable Circle to operate under a regulated banking entity, broadening its institutional services and enhancing trust in its stablecoin offerings.
Meanwhile, Kraken Bank, which has already established a state-special purpose depository institution (SPDI) charter in Wyoming, a crypto-friendly state pioneering regulatory frameworks for crypto banks, is also making waves. This model enables Kraken and other firms to offer banking services integrated with digital assets under a regulated state charter. The OCC’s recent openness to crypto charters federally has further encouraged this approach.
The GENIUS Act's impact extends beyond the crypto industry, as traditional financial institutions and major corporations like Walmart, Amazon, and Meta are also considering the launch of their own brand-specific stablecoins. This regulatory advancement enables companies like Ripple, Circle, and Kraken to expand their services into mainstream finance through banking charters and new stablecoin products, positioning themselves as key players in a rapidly growing market projected to surpass a trillion dollars in the coming years.
In summary, the U.S. stablecoin market, currently valued around $250 billion and dominated by USDT and USDC, stands to benefit significantly from the GENIUS Act. The legislation reduces regulatory uncertainty, encouraging traditional financial institutions and major corporations to explore stablecoin issuance. This proactive positioning by major crypto firms paves the way for stablecoins to integrate more deeply with traditional finance, enhancing their legitimacy and utility across the U.S. economy.
[1] CoinDesk (2025). Senate Passes Bill to Regulate Stablecoins, Advancing US Crypto Legislation. [online] Available at: https://www.coindesk.com/policy/2025/06/17/senate-passes-bill-to-regulate-stablecoins-advancing-us-crypto-legislation/
[2] Cointelegraph (2025). Ripple Applies for U.S. Banking License, Plans to Offer Regulated Stablecoin RLUSD. [online] Available at: https://cointelegraph.com/news/ripple-applies-for-us-banking-license-plans-to-offer-regulated-stablecoin-rlusd
[3] Decrypt (2025). Circle Plans to Establish First National Digital Currency Bank Under New Regulatory Framework. [online] Available at: https://decrypt.co/86313/circle-plans-to-establish-first-national-digital-currency-bank-under-new-regulatory-framework
[4] CoinDesk (2025). Wyoming's SPDI Charters Attract Crypto Firms as Regulatory Clarity Improves. [online] Available at: https://www.coindesk.com/business/2025/06/01/wyomings-spdi-charters-attract-crypto-firms-as-regulatory-clarity-improves/
The GENIUS Act, with its establishment of federal regulatory frameworks for "payment stablecoins," encourages businesses to explore opportunities in the stablecoin market. Traditional finance institutions, such as Ripple, Circle, and Kraken, are leveraging the Act to apply for banking charters, aiming to expand their services and increase their market presence in the finance technology sector.
The GENIUS Act's impact does not solely affect the crypto industry; major corporations like Walmart, Amazon, and Meta are also considering launching their own stablecoins, indicating a potential shift in the business world towards digital currencies.
