In a major shift for the U.S. financial system, the Federal Reserve has officially removed “reputational risk” as a factor in banking supervision. The move is already sending ripples through the crypto industry—and may mark a pivotal moment for blockchain companies like Ripple and its native token, XRP.
For years, U.S. banks were able to deny services to cryptocurrency firms not based on financial soundness or legal concerns, but simply due to perceived reputational harm. This subjective standard, often criticized as vague and arbitrary, effectively barred many compliant blockchain companies from accessing basic banking infrastructure.
Now, that’s changed. The Fed’s updated guidance requires banks to assess clients based on measurable financial risks, not fears tied to image or public perception. This opens the door to fairer, more objective evaluations for digital asset firms operating within legal frameworks.
Ripple, a blockchain company that has maintained a strong reputation for compliance and institutional collaboration, is uniquely positioned to take advantage of this regulatory update.
With RippleNet enabling real-time cross-border settlements and XRP serving as a bridge asset, Ripple already partners with central banks and financial institutions worldwide. The removal of reputational barriers could unlock long-awaited opportunities for U.S. banks to integrate Ripple’s blockchain infrastructure.
This could, in turn, drive increased usage of XRP in global liquidity and payments—a use case Ripple has been building toward for over a decade.
The market has already responded. XRP jumped over 9% in the last 24 hours, climbing to $2.20, with an additional 0.5% gain in the past hour alone. XRP has also significantly outpaced both Bitcoin and Ethereum in the past year, posting an eye-catching 365.2% annual gain.
Traders and analysts alike are pointing to the Fed’s decision as a turning point for U.S. crypto policy—and a bullish indicator for XRP’s future.
Prominent French crypto trader Arthur called the change “huge for crypto,” adding:
“Reputational risk was never about facts—it was about fear. Removing it sends a signal that the system is ready to work with crypto, not against it.”
The broader community echoed this sentiment, seeing it as a signal that U.S. financial regulation is maturing to meet the digital asset economy with clarity instead of caution.
With the reputational risk hurdle gone, more U.S. banks may be willing to explore partnerships with digital asset firms—especially those like Ripple with proven regulatory track records. This could catalyze a wave of institutional adoption in the crypto space.
For Ripple, the policy shift could fast-track domestic expansion and further validate XRP as a scalable, compliant liquidity solution. As mainstream banking begins to embrace crypto infrastructure, XRP may be poised for even greater utility—and valuation.
June 2025, Cryptoniteuae