Crypto enthusiast All Things XRP has highlighted why banks have not yet announced partnerships with Ripple despite the company nearing the conclusion of its legal battle with the U.S. Securities and Exchange Commission (SEC).
The primary reason cited is regulatory risk, with banks waiting for complete legal clarity before publicly committing to any collaboration involving Ripple’s technology or XRP.
WHY BANKS WON’T ANNOUNCE RIPPLE PARTNERSHIPS YET.
Ripple’s legal fight is ending, but banks stay silent. Why? Regulatory risk. Until the SEC case is fully closed, compliance concerns hold them back.
Let’s break down why they’re waiting.
pic.twitter.com/7fNGUf64q2
— All Things XRP (@XRP_investing) March 25, 2025
Regulatory Compliance as a Barrier
U.S. banks operate under strict oversight from multiple regulatory agencies, including the Office of the Comptroller of the Currency (OCC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the SEC, and the Financial Crimes Enforcement Network (FinCEN). Each of these regulators imposes specific requirements for financial institutions engaging in new business activities, including FinTech partnerships.
If a bank were to announce a partnership with Ripple before the legal process is fully resolved, it would have to conduct an extensive risk analysis and demonstrate to regulators that such a collaboration does not violate financial laws. Until banks can be certain they meet these requirements, they will remain hesitant to move forward publicly.
The OCC had previously imposed strict approval requirements for banks engaging in cryptocurrency-related activities. Although these restrictions were eased in March 2025, financial institutions are still required to prove they have robust risk management systems in place. Any premature engagement with Ripple without full regulatory clarity could lead to penalties, regulatory scrutiny, or legal challenges.
Concerns Over AML and Compliance History
Financial institutions are also cautious due to Ripple’s past regulatory challenges. In 2015, FinCEN fined Ripple $700,000 for violating the Bank Secrecy Act (BSA) by failing to register as a money services business (MSB) and lacking sufficient anti-money laundering (AML) controls. Banks must ensure that Ripple is fully compliant with AML regulations before proceeding with large-scale partnerships.
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Regulatory frameworks require banks to prevent money laundering, and any association with a firm that has faced compliance issues increases due diligence requirements. If a bank were to engage with Ripple without confirming full regulatory compliance, it could risk fines, investigations, or even the loss of its banking charter.
Third-Party Risk Management and Reputation Concerns
Banks approach partnerships with fintech firms cautiously, conducting extensive due diligence before moving forward. Given that Ripple has been under SEC litigation, banks must ensure there are no unresolved legal liabilities.
They also need to confirm that XRP transactions will not be classified as securities offerings. Until these legal risks are fully addressed, banks will delay any public announcements.
Another factor contributing to this hesitation is reputation management. No bank wants to be the first to publicly align with Ripple and risk becoming the subject of regulatory scrutiny. Financial institutions prioritize stability, and any association with a firm that has been involved in a legal battle with the SEC carries potential risks.
Even if Ripple’s legal issues are resolved favorably, banks will likely proceed cautiously by testing RippleNet in private pilot programs before making any formal announcements regarding XRP usage.
Future Timeline for Announcements
Currently, banks are reportedly engaged in private discussions with Ripple. Public confirmation of partnerships is expected to follow once financial institutions are confident that regulators will not object. However, the process will be gradual rather than immediate, as banks take a measured approach to integrating Ripple’s technology.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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