Ripple CEO Blows The Whistle On Major Gap Between Traditional Finance And Crypto

Ripple CEO Brad Garlinghouse is calling out the unfair gap between crypto firms and traditional banks. According to the Ripple CEO, regulators hold crypto firms to higher standards, even when they already follow the same rules. Garlinghouse is urging fair oversight so all players in the financial system have an equal chance to grow as Ripple awaits a decision on its national charter.

Garlinghouse Urges Regulators To Apply Equal Standards To Crypto And Banks

At DC Fintech Week, the Ripple CEO spoke about how regulators treat crypto companies and traditional banks differently. Brad Garlinghouse said that crypto firms like Ripple face stricter reviews and more regulatory hurdles, even when they follow the same compliance rules meant to stop crypto crime and protect users, including regulations such as Anti-Money Laundering (AML), Know Your Customer (KYC), and Office of Foreign Assets Control (OFAC). These are the same rules that regular banks follow. However, he said crypto companies often face extra hurdles and are judged more harshly. 

He also said that changes in leadership, like at the U.S. Securities and Exchange Commission (SEC) or the White House, might not fix the problem unless there is a clear plan for fair and equal treatment. According to Garlinghouse, the issue is not about who is in charge but about having one set of fair rules for everyone. The Ripple CEO is calling for a financial ecosystem where crypto and traditional finance can operate and grow under the same conditions.

Ripple Awaits National Charter As Industry Pressures Mount On Regulators

Ripple is still waiting for a decision on its national bank charter, which the company applied for in July. If approved, it could help Ripple become more connected to the U.S. financial system and make it easier for the company to operate like a regular bank. But not everyone supports this move. Some U.S. banking groups have asked the Office of the Comptroller of the Currency (OCC) to delay or stop approving charters for digital asset firms. 

According to the U.S. banking groups, granting national bank charters to digital asset firms like Ripple could create policy and procedural challenges within the traditional banking system.

Garlinghouse, however, believes that crypto firms should have the same access to critical financial tools as traditional banks. Such access, he explains, would include eligibility for a Federal Reserve master account, allowing crypto firms to move funds more smoothly and take part more fully in the broader financial ecosystem.

Traditional banks want to keep control, while crypto firms like Ripple are pushing for inclusion and fairness. As Ripple waits for the charter decision, Garlinghouse continues to call for balance and fairness as the key to the future of finance.