A new executive order signed by President Donald Trump on May 19 could reshape how digital-asset firms operate in the U.S. — and Ripple and XRP stand to gain the most if regulators follow through.
What the order does
- The order directs the heads of federal financial regulators to review their rules and practices within 90 days to identify laws that may be preventing fintech and crypto companies from partnering with federally regulated institutions (banks, credit unions, investment advisers) or obtaining national bank charters, insurance, or other federal authorizations.
- It also asks the Federal Reserve Board (FRB) to produce a full report within 120 days assessing which entities may access the government’s payment accounts and services, whether the Fed has the legal authority to grant direct access to crypto firms, and what risks such access could introduce.
Why this matters for Ripple and XRP
- Ripple has long marketed XRP as a fast, low-cost bridge currency for cross-border payments aimed at banks and financial institutions. A core constraint has been limited access to Federal Reserve payment infrastructure, which today is generally reserved for depository institutions.
- Without direct ties to Fed payment rails, crypto firms often pursue national bank or trust charters to qualify for that access. Several crypto firms — including Kraken, Coinbase, Circle, Anchorage, Paxos, and BitGo — have sought such charters; the article notes Kraken was recently approved for access to a Fed master account. Ripple itself has received conditional approval from the Office of the Comptroller of the Currency (OCC) for a national bank charter.
Potential outcomes
- If the Fed opens direct access to nonbank digital-asset firms, Ripple could potentially integrate its technology with the U.S. dollar payment system, enabling XRP to function as a real-time bridge asset for dollar settlements. That link could boost demand for XRP and accelerate adoption by financial institutions.
- Regulators will weigh legal authority and financial stability, liquidity, and operational risks before any changes are made, so outcomes are not guaranteed.
Bottom line
This executive order sets a clear timetable for regulators to examine structural barriers to crypto participation in U.S. payment systems. For Ripple and XRP, the review could remove a major hurdle — but any shift will depend on regulator findings and how they balance innovation with risk.
Read more AI-generated news on: undefined/news
