$XRP The banking sector is facing a critical transition as new digital asset regulations approach final approval in the U.S.
Crypto Sensei (Crypt0Senseii), a well-known crypto analyst, recently explained what these developments mean for banks, how they might respond, and the potential impact on XRP.
He pointed to two key legislative efforts in Washington: the Genius Act, which has been passed into law and focuses on stablecoin regulation, and the Clarity Act, which is currently advancing through Congress and the Senate. According to him, the Clarity Act is expected to be finalized before the end of the year.
✨Banks Need a Digital Strategy
Crypto Sensei argued that large institutions such as Citibank, Bank of America, and JPMorgan have already prepared for regulatory clarity by investing resources into teams and infrastructure. Reports from early 2025 revealed that Bank of America is ready for cryptocurrency payments, reinforcing the idea that the major banks are prepared.
He emphasized that these banks had the money and the time to build internal solutions. In contrast, he highlighted that smaller and mid-sized banks, along with credit unions, likely have done little to position themselves for this transition.
For these institutions, the path forward requires a different approach. Instead of attempting to match the resources of the largest banks, they will need to partner with companies that already provide the necessary infrastructure.
✨The Role of XRP in the Transition
XRP offers immediate advantages for financial institutions seeking efficiency. By connecting to Ripple’s infrastructure, banks can bypass outdated systems that rely heavily on Nostro and Vostro accounts. Crypto Sensei explained that this shift could allow banks to save up to 80% on costs while freeing up dormant funds for productive use.
This efficiency directly ties into XRP’s role as a bridge asset for cross-border settlement. As more banks adopt Ripple’s solutions, the demand for XRP is expected to rise significantly. The combination of cost savings, regulatory clarity, and the need for competitive positioning suggests that adoption could accelerate once new rules are finalized.
✨The Coming Supply Shock
Bank expectation of banks employing Ripple raises the possibility of an XRP supply shock. Institutions require significant liquidity to settle cross-border payments, unlike retail investors. As mid-sized and smaller banks connect to Ripple’s infrastructure to remain competitive, demand for XRP will rise beyond current levels.
According to Crypto Sensei, this marks a turning point. While major banks may rely on internal systems, most institutions must act swiftly after regulation, making XRP essential to their strategies through established digital asset providers.
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