Ripple CEO Brad Garlinghouse has called on US regulators to give cryptocurrency firms the same access to financial infrastructure as traditional banks.
Speaking at DC Fintech Week, he argued that crypto companies adhering to AML and KYC standards should be entitled to a Federal Reserve master account, a key privilege enjoyed by banks. Garlinghouse labelled the unequal treatment of crypto firms “hypocritical,” accusing Wall Street lobbyists of blocking progress for competitive reasons.
Garlinghouse confirmed Ripple’s pursuit of both a Federal Reserve master account via its affiliate Standard Custody & Trust Company and a national bank charter from the Office of the Comptroller of the Currency.
He said these steps would help ensure that Ripple’s operations, including its stablecoin RLUSD, operate under tighter regulatory oversight and enhanced transparency. He added that such measures would also help reduce risk by eliminating dependence on intermediaries.
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According to Garlinghouse, some major financial institutions have resisted these changes, lobbying against charter approvals to preserve their dominance. “It’s been a little disappointing to see some of the traditional banks start to lobby against things like that,” he remarked, noting that equitable regulation would create “more stability” within the system.
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.
Brad Garlinghouse, Ripple CEO Despite this opposition, Garlinghouse said attitudes among banks were slowly shifting. He mentioned recent discussions with institutions now exploring collaboration with Ripple, a sign that perceptions around crypto partnerships are beginning to evolve. Garlinghouse concluded that crypto and traditional finance should operate under equivalent standards, with both held equally accountable.
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