ICBA Urges OCC to Reject Ripple’s Bank Bid Over RLUSD and Compliance Concerns

The Independent Community Bankers of America (ICBA) has sent a formal letter to the Office of the Comptroller of the Currency (OCC) requesting the rejection of Ripple’s national bank charter application. The key concern? Ripple’s proposed stablecoin RLUSD, which ICBA claims functions similarly to traditional bank deposits—without being subject to the same rules.

ICBA argues that RLUSD could drain liquidity from community banks, posing a risk to the stability of the traditional banking system. “Stablecoin issuers should not receive full banking privileges without full banking responsibilities,” ICBA emphasized.

The letter also cites Ripple’s history of non-compliance, including alleged violations of BSA/AML/CFT laws and its ongoing legal battle with the SEC. The association insists that companies like Ripple, which “repeatedly push regulatory boundaries,” should not be granted trust bank charters.

ICBA further criticized the OCC for loosening eligibility requirements for trust charters and called for stronger regulatory scrutiny and enforcement to protect consumers and the banking system’s integrity. The message is clear: Crypto firms must play by the same rules as banks.