Ripple has filed for a banking license in the U.S., gaining clarity through insights from official Federal Reserve documents. The rules outlining application procedures suggest a 90-day review period and opportunities for expedited approval.
A Defined 90-Day Review Period
According to expert Mr. Man, once a formal banking application is filed, the Federal Reserve or the appropriate Reserve Bank must act within 90 calendar days of public notice. This window facilitates public comment and internal review. According to regulations, the Fed must either approve, deny, or require republication of the application.
Approval Conditions: Three and Six-Month Mandates
Each approval order from the Board must include a provision requiring the transaction to be completed within three months. Additionally, if the application involves acquiring stock in a newly formed bank, such as Ripple’s proposed trust charter, the new entity must start operating within six months of consummation. This ensures that approved institutions do not remain inactive.
Emergency Powers: A Regulatory Bypass
A clause allows the Federal Reserve Board to completely bypass procedural requirements in emergencies. This clause can expedite Ripple’s charter approval if deemed essential for financial stability. This is particularly relevant given Ripple's growing influence in global payment infrastructures.
Federal Reserve documents indicate that the process for Ripple's license is well-structured yet flexible. Normal timelines suggest approval and operational launch could take up to nine months, but under critical circumstances, this may be significantly shortened.
