Ripple’s bid for a US bank charter is facing a major pushback from a coalition of banking associations However, Fed documents contain an “emergency clause” that could allow regulators to fast-track an approval This sets up a high-stakes battle between the banking lobby’s protest and a potential regulatory override. Ripple’s quest for a national trust charter reveals intriguing details in Federal Reserve documents . Namely, under the section 12 CFR § 262.3 , it’s stated that the Fed must publicize the application and generally has a 90-day review window for filings. However, the more interesting part is the fact that the Fed has the authority to bypass standard notification periods if it deems a proposal essential for averting a crisis or is required, during an emergency. Analyses suggest that if the Fed sees Ripple’s charter as systemically important, it could expedite approvals outside the typical 90-day window. Ripple Labs filed for a national trust bank charter with the US OCC (Office of the Comptroller of the Currency) on July 2, aiming to handle its RLUSD stablecoin reserves federally and access a Fed master account. The application inc… The post As Banking Lobby Protests, a Fed Rule Could Expedite Ripple’s Application appeared first on Coin Edition .
