Ripple CEO Brad Garlinghouse revealed that he has lost a long-standing banking relationship due to his high-profile status in the cryptocurrency sector during a presentation in Washington on Wednesday. “Individuals within the crypto industry are being de-banked,” he said at DC Fintech Week. “I personally have been de-banked.
Garlinghouse connected his own situation to the broader challenges faced by the U.S. cryptocurrency industry in maintaining banking relationships, particularly as regulators have urged financial institutions to reduce their involvement with crypto. He later disclosed in an interview with CoinDesk that Citigroup Inc., with which he had been a customer for around 25 years, was the institution that recently severed ties with him. Additionally, he mentioned that this was not the only banking relationship he had lost due to his involvement in the crypto space. “They said, ‘You have five days to move your money.’ They were actually super honest. They’re like, ‘Look, you are a notable person in crypto, and having notable people in crypto, and banking the crypto industry means more scrutiny from federal regulators.'”
The CEO expressed strong criticism of President Joe Biden’s administration in Washington, stating that Securities and Exchange Commission Chair Gary Gensler has led a “reign of terror” and accused the U.S. Treasury Department and the Office of the Comptroller of the Currency of being “hostile” to the cryptocurrency industry. He emphasized that regardless of the outcome of the U.S. presidential elections next month, the future of crypto policy is likely to improve. “No matter what happens, we’re going to see a reset,” he stated.
Additionally, he mentioned that an exchange-traded fund (ETF) linked to the price of XRP is “inevitable.” Garlinghouse and Ripple have been key supporters of the Fairshake political action committee, a pro-crypto group that has emerged as a significant force in campaign finance for the 2024 elections. Although he personally supports the political opponent of Sen. Elizabeth Warren (D-Mass.), he is not endorsing either major U.S. political party and noted that he chose to wear a purple tie on Wednesday for a specific reason.
The primary indicator of the next administration’s stance on cryptocurrency will be the appointments made by the president at key agencies such as the SEC, Treasury, OCC, and Commodity Futures Trading Commission.
“It’ll be telling as to what the direction of travel is for the next four years,” Garlinghouse remarked. “No matter what, we’re going to end up in a better place.” He added, “When we look back on this period of time in the United States as it relates to crypto, it’s going to look like a speed bump.”
However, when asked for advice to give to a crypto startup at this moment, he suggested they should incorporate outside the U.S. “I hate saying that,” he admitted. “I’ll be honest: I grew up in Kansas. I’m a pro-U.S. guy.” He expressed concerns about the uncertainty surrounding the protection of companies from regulatory lawsuits in the U.S., referencing Ripple’s own legal troubles with the SEC.
A spokesperson for Citi did not immediately respond to a request for comment.
