Launchy Regulatory Roundup #44 - Circle, Ripple Seek US Bank Licenses

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Welcome to our 44th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: Circle, Ripple Seek US Bank Licenses 🏦 

• Global Legal Roundup

• Case Study: Tokenized Equities in Legal Limbo

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HEADLINE

Circle, Ripple Seek US Bank Licenses

State of play: Circle and Ripple have both applied for US national banking licenses from the Office of the Comptroller of the Currency.

• Circle’s license would let it act as custodian for USDC reserves and institutional crypto assets but not take deposits or issue loans.

• Ripple aims to have OCC oversight of its RLUSD stablecoin and may expand its crypto services.

• These moves come as the Trump administration creates a more favorable regulatory climate for crypto firms.

What’s Next: If approved, Circle and Ripple will join a small group of crypto firms with federal bank charters. Circle could soon begin holding USDC reserves directly under OCC supervision, while Ripple may get similar treatment for RLUSD.

Why it Matters: These applications show how fast crypto companies are moving to integrate with the US financial system. A federal bank license could boost confidence among regulators, institutional investors, and corporate clients.

Our Take: This signals that stablecoins are shifting further into the regulated mainstream.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 Financial industry group pushes back on tokenized equities.

• 🇺🇲 NY Attorney General warns stablecoin bills put Americans at risk.

• 🇺🇲 Crypto tax amendment dropped from Senate's 'Big, Beautiful Bill.’

• 🇺🇲 TradFi group calls on SEC to establish open, progressive crypto rules.

• 🇺🇲 Arizona governor vetoes bill seeking reserve fund from seized crypto.

• 🇺🇲 Sen. Cynthia Lummis renews push for crypto tax reform with new bill.

• 🇺🇲 Bankruptcy judge allows Celsius to proceed with claims against Tether.

• 🇺🇲 Aptos Labs CEO & co-founder joins CFTC Digital Asset Subcommittee.

• 🇺🇲 US Secret Service team has recovered $400M in crypto from criminals.

• 🇺🇲 US Supreme Court decides not to review privacy case for Coinbase data.

Europe:

• 🇪🇺 MiCA enforcement still fragmented across EU, says Bitpanda exec.

• 🇪🇺 Euro stablecoin by DWS and Deutsche Bank gets regulatory approval.

• 🇹🇷 Turkish authorities block PancakeSwap in crackdown on crypto websites.

APAC:

• 🇲🇾 Malaysian regulator proposes easing crypto asset listing process.

• 🇨🇳 Tech giants urge central bank to approve offshore yuan stablecoins.

• 🇰🇷 Bank of Korea pauses CBDC project as local stablecoin adoption speed up.

CASE STUDY

Tokenized Equities in Legal Limbo

Credits to Cointelegraph and Vincent Quill for the original article

State of play: Tokenized equities are quickly gaining traction as platforms like Kraken, Bybit, and Robinhood bring blockchain-based stock trading to a broader audience. However, these products sit in a legal gray zone.

• Investors don’t actually own shares when they buy tokenized stocks.

• Instead, they hold digital tokens issued by intermediaries, which don’t grant voting rights, direct claims on company assets, or access to financial information.

• This gap led to confusion when Robinhood began offering “OpenAI tokens” in Europe—tokens that turned out not to represent any real stake in OpenAI.

Industry experts warn that such misunderstandings could become common. John Murillo of B2BROKER emphasized that investors must clearly understand the limits of tokenized equity.

• Attorney Tyler Yagman argued that clearer regulations are urgently needed to protect retail buyers and ensure transparency.

• Encouragingly, SEC Chairman Paul Atkins has signaled openness to supporting tokenization, suggesting the rules may soon catch up with innovation.

Our Take: Without clear rules, tokenized equities risk confusing investors and blurring the line between real ownership and synthetic exposure. Stronger disclosure and regulation will be essential to build trust and prevent misuse

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Justin Slaughter’s read on policy market mapping.

• Pat Toomey’s opinion on crypto legislation crucial moment.

• Andre Omietanski’s. read on US Bank Secrecy Act revamp.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.