A powerful banking lobby has pushed back against efforts to formally integrate stablecoins into the U.S. financial system. The Bank Policy Institute (BPI) sent four letters to the Office of the Comptroller of the Currency (OCC) opposing five national trust charter applications filed by major stablecoin issuers, including Ripple.
According to Axios, the dispute centers on whether stablecoin firms should be allowed to operate under federal trust-bank charters, which traditional banks say give crypto companies an unfair shortcut to federal legitimacy.
Just released - ABA and 52 state banking associations urge @USTreasury to uphold GENIUS Act's ban on stablecoin interest: https://t.co/2P2jelAuAg
— American Bankers Association (@ABABankers) November 4, 2025
Under the proposed Genius Act, stablecoin issuers must hold either a federal or state charter. The BPI argues that granting these charters to digital asset firms could add systemic risk and bypass regulatory safeguards.
Meanwhile, Ripple’s stablecoin (RLUSD) recently crossed the $1 billion market cap, highlighting the rapid growth of dollar-pegged digital assets as the U.S. struggles to define their legal framework.
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