Ripple and XRP could be among the biggest winners of a new executive order signed by US President Donald Trump this week. The order directs federal regulators to review whether crypto companies can access the country’s dollar payment system. This move could be a game-changer for XRP, as it would determine how digital asset firms operate in the US and could establish the cryptocurrency as a bridge currency through Ripple.
Trump Orders Review Of US Dollar Payment Rails For Crypto Firms
On May 19, Trump signed an executive order directing the federal government to review its regulations and policies. The order looks at whether fintech and crypto firms should have greater access to the country’s dollar payment infrastructure. According to the official White House website, the heads of each federal financial regulator must review their existing laws and practices within 90 days.
Trump has mandated these regulators to find rules that may be blocking fintech and crypto firms from partnering with federally regulated institutions such as banks, credit unions, and investment advisers. Regulators are also expected to sift through policies that make it harder for these firms to get national bank charters, insurance, and other federal authorizations.
Furthermore, Trump has also asked the Federal Reserve Board (FRB) to take a closer look at who can access the government’s payment accounts and services. The US President has given the Fed 120 days to send a full report covering these findings. Within that report, the regulator must also review whether it has the legal authority to give these crypto companies direct access to its payment system and what risks may come with doing so.
Implications Of Trump’s Order On Ripple’s XRP
Trump’s recently signed executive order could be one of the most important developments for Ripple and XRP in recent years. Ripple has long positioned XRP as a tool for fast and low-cost cross-border payments, often targeting banks and financial institutions as its core customers. However, one major barrier hindering Ripple’s growth was limited access to the Federal Reserve’s payment infrastructure.
Under current Fed rules, direct access to Reserve Bank payment accounts is limited to depository institutions like traditional banks. This has pushed crypto firms, including Kraken, Coinbase, Circle, Anchorage, Paxos, and BitGo, to pursue national trust bank charters just to qualify for this kind of access. Moreover, the regulator only recently approved Kraken’s access to a Fed master account.
Ripple itself has been working toward a national bank charter to overcome this limitation. The crypto firm was recently granted conditional approval for a national bank charter by the Office of the Comptroller of the Currency (OCC), expanding its role in the US banking system. Should the Fed open direct access to digital asset firms, it could be a game-changer for XRP. Ripple could potentially connect its core technology straight into the US dollar payment system.
This direct link could allow XRP to serve as a bridge asset in real-time dollar settlements, driving greater demand for the cryptocurrency. For XRP holders and investors, this shift in policy direction signals that the US may finally be ready to welcome Ripple and the payment infrastructure it has been building for over a decade.
