Big Banks Push Back on Ripple’s Trust Bank Bid as XRP Price Climbs Toward 2018 Highs

Ripple’s application for a US banking licence faces strong headwinds as five banking associations unite to ask regulators to hit pause—just as XRP flirts with its all-time high.

XRP surged past $3.70 on Monday, inching closer to its long-standing 2018 peak. But that price movement wasn’t the only buzz. Behind the scenes, old money made its move. A group of banking giants signed a letter last week pressing US regulators to slow Ripple’s attempt to step inside their territory—with a federal banking licence in hand.

Coordinated Resistance from Traditional Finance

On July 17, five prominent banking industry groups jointly submitted a letter to the Office of the Comptroller of the Currency (OCC). Their demand? A temporary halt to Ripple Labs’ pending application to establish a national trust bank.

The signatories weren’t small fry either. We’re talking about the American Bankers Association (ABA), National Bankers Association, America’s Credit Unions, Consumer Bankers Association, and the Independent Community Bankers of America. Together, they represent institutions managing trillions in assets.

The letter, according to sources familiar with the matter, raised “serious concerns” about the regulatory oversight and consumer protections associated with granting Ripple a national trust charter. Ripple, for its part, has not publicly commented on the petition—at least, not yet.

One banker close to the matter summed it up bluntly:
“This isn’t just about Ripple. It’s about keeping fintech in its lane until the rules are clearer.”

XRP Defies Pressure, Closes in on Record

Ripple’s legal headaches might be long-running, but XRP holders haven’t blinked.

On Monday, July 21, XRP posted a 3% gain, hitting $3.70—just $0.14 shy of its record high from January 2018. Trading volumes surpassed $10 billion over 24 hours, signalling robust market interest.

The price action followed a familiar pattern:

• Big headline,

• Quick surge,

• Then consolidation.

And yet, this rally feels different. There’s a shift in tone from traders, and it’s not just about technicals. Market chatter suggests some investors see Ripple’s trust bank ambitions as a long-term bullish signal—even if roadblocks lie ahead.

“This pushback shows Ripple’s a threat,” one crypto fund manager noted on X (formerly Twitter). “That’s actually bullish.”

Technicals Flash Green, but It’s a Narrow Path

Price charts are painting a compelling story for XRP bulls. Momentum indicators remain strong, with the RSI holding just below overbought territory—suggesting there’s still room to run.

One major resistance zone looms, though: the elusive $4.00 level. XRP has never breached that mark. But current conditions suggest it could, particularly if volume holds.

Here’s a quick snapshot of the latest XRP technicals:

Traders are cautious, but not pessimistic. Some believe even with regulatory tension brewing, the broader momentum around crypto adoption and institutional interest in XRP might keep the rally intact—at least in the short run.

Why the Banks Are Worried, According to Insiders

Banks aren’t exactly known for playing nice with crypto firms, and Ripple’s ambition to set up a trust bank hits a nerve.

According to one policy analyst who works with federal financial regulators, the fear is simple: precedent. If Ripple gets a trust charter, so can others. And suddenly, crypto-native firms are competing directly with legacy banks—not just in payments, but in custody, lending, and asset management.

“The OCC has already been exploring more inclusive frameworks,” the analyst said. “This letter is a strategic delay tactic, plain and simple.”

Some banks argue they’re protecting consumers. But critics say the move smacks of protectionism, dressed up as concern.

Don’t forget: Ripple already holds money transmitter licences in most US states. A federal trust bank licence would essentially consolidate its ability to offer custody and asset management services at a national scale. That’s what has alarm bells ringing in Washington boardrooms.

Ripple’s Legal Shadows Linger, but Investors Stay Focused

The battle over Ripple’s legal status with the SEC might be old news—but it’s far from settled. Even after last year’s partial courtroom win, the company’s regulatory profile remains uncertain.

Still, investors appear unfazed. The market’s focus is now shifting away from whether XRP is a security, and towards whether Ripple can become a proper banking player.

That’s a big narrative shift.

In fact, some crypto traders say the renewed pressure from traditional banks could actually help Ripple build sympathy in public opinion. “Everyone loves an underdog,” one analyst wrote in a note to clients on Monday.

For now, Ripple seems to be walking a tightrope. It wants to be seen as a reliable, regulated institution—while still holding onto the crypto-native ethos that made it popular in the first place.

Not an easy balance. But with XRP pushing historical highs, the market seems to think they’re managing it.