Levi of Crypto Crusaders recently shared a video on X featuring U.S. Commodity Futures Trading Commission (CFTC) Commissioner Caroline D. Pham outlining why banks are suddenly positioned to accelerate their crypto ambitions.
Her remarks highlight the regulatory change that has cleared the way for institutions to expand their digital asset operations—and why XRP stands to gain.
Regulatory Turnaround
In the clip, Pham underscored the significance of the U.S. Securities and Exchange Commission’s reversal of its controversial accounting guidance, Staff Accounting Bulletin 121 (SAB 121). She stated, “The infamous SAB 121, which I think the SEC forgot that banks are public companies, so clearly getting that rescinded by Acting Chairman Uyeda on the second day in office was huge.”
SAB 121 had required publicly traded companies holding crypto for customers to record those assets as liabilities, discouraging large-scale bank custody. Its rescission under Acting SEC Chair Mark Uyeda in early 2025 removed a major barrier and signaled a more supportive regulatory climate.
XRP in Focus as Banks Speed Into Crypto 🚀 #XRP pic.twitter.com/3bPr8DxQPP
— Levi | Crypto Crusaders (@LeviRietveld) September 10, 2025
Banks Ready to Accelerate
Pham noted that leading banks were already exploring crypto quietly, explaining, “So banks can do these activities—of course, JPMorgan has been very active in the digital asset space as has BNY, as have Citi and all other banks, it’s just been quiet.”
She predicted a visible ramp-up: “Now I think you’re going to be able to see them really accelerate, so all of these projects that everybody is working on since 2016, now we are going to start seeing more deployment, more volume.”
According to Pham, much of this growth will initially come through indirect channels: “And a lot of this [is] done frankly through portfolio companies, strategic equity investments. So you’ll see that deployment, but it’s really bank regulators making sure again that the bank regulator[s] are comfortable with the banks, with their risk governance frameworks. Then a lot is going to start to happen.”
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Implications for XRP
The shift has particular relevance for Ripple and its XRP. Ripple has long positioned XRP as a bridge currency for cross-border payments, and the December 2024 launch of Ripple USD (RLUSD)—with BNY Mellon as primary custodian—gives banks a trusted, dollar-backed on-ramp to tokenized settlement.
With accounting roadblocks removed, institutions can now integrate XRP-backed payment solutions more confidently into their operations.
A Measured Path Forward
While the accounting change is significant, Pham stressed that prudential oversight remains. Bank regulators will still demand rigorous risk management before approving large-scale crypto custody or settlement. Nevertheless, the convergence of clearer regulations and years of quiet infrastructure development points to a decisive new phase for institutional crypto adoption.
As Levi of Crypto Crusaders captured in his X post, what began as cautious experimentation is poised to become a large-scale deployment. With banks now free to act on nearly a decade of groundwork, XRP is emerging as a prime beneficiary of this long-awaited shift.
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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