The American Bankers Association (ABA) has formally opposed applications by Ripple and Circle for national trust bank charters, arguing that neither company meets the fiduciary service requirements under 12 U.S.C. § 92a. The ABA, joined by five financial groups, urged regulators to reject both applications, claiming Ripple's payment/stablecoin services and Circle's USDC reserve management don't qualify as estate or asset management under federal law.
Ripple seeks a charter to expand services under the GENIUS Act through Office of the Comptroller of the Currency (OCC) oversight, while Circle aims to establish a "First National Digital Currency Bank" for direct federal supervision of USDC reserves. The ABA contends approval could bypass Bank Holding Company Act regulations and disrupt banking sector parity.
Prominent XRP advocate John Deaton condemned the ABA's stance as "regressive," accusing it of protecting traditional banking interests. In a July 22 social media post, Deaton urged lawmakers to reject ABA recommendations, stating: "Blocking Ripple’s entry would hinder technological progress and maintain outdated financial structures." The outcome may significantly influence blockchain integration into federal banking frameworks.