Ripple President Monica Long predicts U.S. banks will adopt tokenized assets and crypto custody in 2025, supported by potential regulatory changes like the repeal of SAB 121.
Ripple President Monica Long recently expressed confidence in the potential for U.S. banks to launch tokenized asset initiatives and crypto custody solutions in 2025.
Her remarks came amidst discussions of possible regulatory reforms, including the anticipated repeal of the contentious SAB 121 policy, which mandates banks holding digital assets to account for them as liabilities.
Long highlighted that 15 of the world’s 25 largest banks have already experimented with tokenized asset projects, suggesting readiness for broader integration in the financial sector.
These regulatory changes are linked to President-elect Donald Trump’s plans to issue executive orders following his inauguration, including the repeal of SAB 121.
Sources indicate that Trump has prioritized this policy adjustment, which is expected to facilitate entry of major financial institutions into the crypto custody space.
Financial analyst Frank Chaparro noted that such a shift could reshape market dynamics by introducing credit, significantly enhancing liquidity, and fostering growth within the cryptocurrency industry.
He underscored that greater liquidity could help stabilize markets, marking a pivotal step for digital asset adoption and maturity. Chaparro further emphasized that these advancements could positively impact Ripple’s XRP, which has faced significant legal challenges.
Meanwhile, the crypto industry is closely monitoring the upcoming policy direction under Treasury Secretary Scott Bessent, who is already under scrutiny from anti-crypto Senator Elizabeth Warren.
In a detailed 31-page letter, Warren raised concerns about the administration’s approach to cryptocurrency regulation, potentially setting the stage for heated debates about the future of digital assets in the United States.
