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Ripple Labs CEO Brad Garlinghouse has accused Wall Street banking lobbyists of obstructing fair competition as crypto firms seek access to the Federal Reserve’s master accounts. He said these actions prevent digital asset companies from fully integrating into the U.S. financial system, even though they meet strict compliance standards.
The remarks came during DC Fintech Week, where Garlinghouse argued that the crypto industry should be treated equally to traditional finance in terms of anti-money laundering and illicit finance requirements.
Garlinghouse centered his argument on the issue of Federal Reserve master accounts, which allow institutions to interact directly with the central bank and its payment systems. Through its subsidiary, Standard Custody & Trust Company, Ripple has applied for a master account to hold reserves for its stablecoin, RLUSD, directly at the Fed.
He stated that crypto companies are willing to follow strict compliance and transparency rules. Yet, he added, they must also be given equal access to financial infrastructure. “You can’t say one and then combat the other,” Garlinghouse said. He described the current stance of traditional banks as hypocritical and anti-competitive.
Master accounts provide financial institutions direct access to payment clearing systems - a benefit currently reserved for traditional banks. Although several crypto firms have applied for such access, the Federal Reserve has been slow to approve any, leaving applications pending through 2025.
Garlinghouse explained that many crypto companies are legally qualified to apply for these accounts or for national bank charters. Still, regulators have taken no public action, keeping applicants uncertain about their status. This inaction, he said, has kept parts of the crypto industry in regulatory limbo.
Beyond regulation, Garlinghouse accused Wall Street banks of lobbying to exclude crypto firms from the financial system. He described this as protectionism - a strategy by banks to maintain dominance and limit new entrants. He noted that this opposition slows innovation and blocks open competition within U.S. finance.
Nevertheless, Garlinghouse also acknowledged a recent shift. He said some banks that previously refused to engage with Ripple are now seeking cooperation. During recent meetings in New York, he reported that banks were asking how they could partner with Ripple on new initiatives.
He described this change as a sign of growing acceptance driven by Ripple’s progress, particularly with its stablecoin RLUSD. The company’s ongoing expansion has drawn renewed attention from financial institutions that once viewed blockchain with skepticism.
Garlinghouse stated that gaining direct infrastructure access would reduce Ripple’s reliance on intermediaries and streamline operations. It would also enhance transparency, reduce transaction friction, and improve risk management in stablecoin activities. Ripple views this as essential for building credibility in institutional markets.
However, regulatory hurdles persist. Authorities still consider many crypto firms high-risk due to concerns about liquidity and compliance controls. Historically, this has led to reluctance in approving master accounts or granting national bank charters.
As Ripple advances its integration efforts, Garlinghouse framed the issue as one of fairness - a question of whether equal compliance should guarantee equal access. His remarks posed a direct challenge to the financial establishment: Can traditional banks continue to deny access to compliant crypto firms while claiming to support fair markets?
Brad Garlinghouse’s remarks mark a critical moment in the ongoing clash between traditional banking and the crypto industry. He accused Wall Street lobbyists of blocking fair access to the Federal Reserve’s master accounts while calling for equal treatment under regulatory standards.
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