In one of the key XRP news today, the American Bankers Association (ABA) has blasted the Office of the Comptroller of the Currency (OCC) for granting Ripple Labs a banking charter in the United States.
XRP News: ABA Blasts OCC for Ripple Banking License
In a statement, the ABA said the approval was wrong and risky for customers and the banking sector as a whole. It also noted that the conditional approval raised important questions about the scope and oversight of Ripple and other companies that were approved. In a statement, Rob Nichols, the head of ABA, said:
“We are concerned that expanding the trust charter in this way, particularly for entities that may not engage in traditional fiduciary activities, could blur the lines of what it means to be a bank and create opportunities for regulatory arbitrage.”
The ABA has long opposed the approval of banking charters for Ripple and other crypto companies, such as Circle and BitGo. In a July statement, the lobby asked the OCC to postpone approval until it has sufficient information about the applicants’ business plans.
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It also noted that the delay would allow the public time and information to assess the applications and the policy shift from American regulators.
One possible reason why the American Bankers Association is skeptical about the banking charter is that it will lead to competition in the banking sector.
For example, with its own regulated charter, Ripple will shift its RLUSD assets from BNY to its in-house bank. Circle will also move its USDC assets from BNY to its in-house bank.
Ripple’s banking license will also allow it to offer banking solutions to other companies. Most importantly, it may decide to move assets from its recently acquired companies to its new banking division.
XRP Price Remains in Red
Meanwhile, the XRP price remains deeply in the red despite the banking charter approval. It also continued falling even as spot XRP ETFs continued their inflows trend.
The ETF added $20 million in assets, double what it brought in a day earlier. As a result, these funds have now absorbed $974 million in inflows and have $1.1 billion in net assets.
One possible reason the XRP price has barely moved is that, while inflows are huge, they account for only a small share of volume. CoinMarketCap data shows that the 24-hour XRP volume stood at over $2.4 billion.
This also explains why Bitcoin price remained in the red last week, even as Michael Saylor’s Strategy bought over 10,000 coins worth nearly $1 billion.
Ripple price has also ignored other notable news, such as the growth of RLUSD to $1.3 billion and a $500 million investment from Citadel and Fortress.
XRP price remains at the key support at $2 and is below the Supertrend indicator and all moving averages. Therefore, there is a risk that the token will continue to move lower, potentially to the key support at $1.50.
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