Cryptocurrency Commentator "Banking Sector Sets Out to Kill XRP·RLUSD"

▲ XRP

Claims are spreading within the cryptocurrency community that the U.S. banking sector has begun to curb Ripple's stablecoin RLUSD and XRP. Cryptocurrency commentator Pumpius, citing internal messages linked to the American Bankers Association, claimed that major banks are opposing digital asset legislation to prevent stablecoin issuers from expanding their competitiveness.

Bitcoinist reported on May 14 (local time) that the controversy grew after Pumpius shared documents he claimed were related to the American Bankers Association ahead of discussions on digital asset regulation by the U.S. Senate Banking Committee. The documents reportedly contained concerns that some parts of the proposed legislation could give stablecoin issuers more room to actively compete with existing banks for customer funds.

The core of the controversy is the expanding influence of regulated stablecoins like Ripple's RLUSD. Stablecoins, designed to be pegged to the value of fiat currencies like the U.S. dollar, are increasingly used in payments, settlements, and international remittances, unlike volatile cryptocurrencies. Since this area has traditionally been dominated by conventional banks, the banking sector is concerned about deposit outflows and the weakening of its control over payment systems.

According to the documents shared by Pumpius, some banking groups reportedly stated that stricter safeguards are needed before the legislation progresses. The banking sector's concern focuses not merely on cryptocurrency adoption itself, but on the potential for customer funds to move more easily out of traditional bank accounts via stablecoins.

XRP supporters interpret this as a sign that Ripple's influence has begun to challenge traditional finance. Ripple has been building blockchain payment infrastructure to process international remittances faster and cheaper, and XRP has played a role in Ripple's cross-border liquidity services. With the addition of RLUSD, the Ripple ecosystem is evaluated to be able to expand its presence in both digital payment networks and the cryptocurrency market.

However, Bitcoinist pointed out that there is little clear evidence that banks are systematically moving to eliminate XRP or RLUSD. The banking sector's concerns are focused on regulated stablecoins attracting deposits and enabling more financial activities outside existing payment networks, and it is difficult to immediately conclude that this is an attempt to eliminate specific assets.

This controversy is intertwined with the U.S. cryptocurrency market structure bill and broader digital asset legislative discussions. If the proposed legislation provides stablecoin issuers with more room to operate, competition between traditional banks and cryptocurrency-based payment networks could become even more distinct. The debate surrounding Ripple and RLUSD demonstrates that the cryptocurrency industry is delving beyond simple investment assets into the realm of bank deposits and payment infrastructure.

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