Ripple's leader, Brad Garlinghouse, revealed... de-banked ...highlighting Citibank's decision to distance themselves from him due to his significant role in the crypto sector. During DC Fintech Week, Garlinghouse shared that he received a mere five days notice to transfer his assets before their two-and-a-half-decade partnership came to an end.
Brad Garlinghouse's enduring partnership with his bank was abruptly concluded.
“Crypto industry participants are increasingly facing banking rejection,” Garlinghouse remarked. “I, for one, have been de-banked.”
Aside from Citibank, numerous conventional financial institutions have been stepping back from crypto figures amid regulatory stress.
With the collapse of crypto-friendly banks like Signature Bank and Silvergate Capital early in 2023, there's been a noticeable shift in banks becoming wary of crypto associations.
Hard On Ripple
Ripple's CEO expressed how his own experiences mirror a widespread issue where industry leaders and companies are finding it hard to sustain their banking ties. He also criticized the Biden government, drawing particular attention to the SEC, Treasury, and OCC, for their seemingly adversarial approach towards the crypto realm.
The SEC finds itself under scrutiny following diverse legal actions targeting U.S. crypto businesses while hesitating on clear directives. Garlinghouse and Ripple Labs are entrenched in a prolonged legal confrontation with this securities body, with tensions reigniting after the SEC's latest appeal.
Beyond Ripple, the SEC's focus has broadened to include giants like Binance, Coinbase, Uniswap Labs, Consensys, and Crypto.com, among others.
Many detractors of cryptocurrency argue that the existing regulatory scenario is akin to a concerted scheme—termed “Operation Choke Point”—aimed at deterring banks from collaborating with crypto entities.
Tyler Winklevoss from Gemini earlier addressed the Federal Reserve's actions against crypto-accommodating Customers Bank, labeling it as part of “Operation Choke Point 2.0.” He proposed that officials are methodically targeting the cryptocurrency sector, aiming to curb its expansion and access to banking services.
Winklevoss cautioned that should Vice President Kamala Harris succeed in re-election, the regulatory climate for digital assets might grow even more confrontational.
In a recent campaign declaration, Harris vowed to develop a definitive regulatory framework for cryptocurrencies to boost industry advancement while safeguarding investors. Nonetheless, her recent outline, with a primary emphasis on protecting black investors, stirred swift controversy.
In contrast, Trump positions himself as a steadfast crypto-supporter. The ex-president pledged to terminate what he perceives as the unlawful clamping down on the crypto sector under the present government.
Optimism for Future Policy
Despite the hurdles faced, Ripple's CEO remains hopeful about the trajectory of U.S. cryptocurrency policies, irrespective of the November presidential election's results.
Contrary to Ripple's Chris Larsen, who recently contributed substantially to Harris’s campaign, Garlinghouse remains impartial. He holds that the current regulatory atmosphere will likely brighten with impending leadership transitions.
Though politically neutral, Ripple's head, Brad Garlinghouse, openly backs John Deaton in his challenge against Senator Elizabeth Warren. He lauded Deaton as a strong champion for the crypto cohort and criticized Warren for her stance on digital currency regulation.
Deaton throws his hat in the ring for a U.S. Senate seat in Massachusetts, facing off against Democratic Senator Warren. The pro-crypto figure has etched his name as an ardent supporter in the ongoing SEC vs. Ripple legal contention.
Conversely, Senator Warren isn't exactly a darling in crypto circles. She's campaigned for tougher measures and hasn't shied away from voicing her wariness about the perils linked to digital currencies.
The pair recently sparred in their debut debate, where a mix of issues from immigration and housing to abortion rights was on the table, alongside their differing cryptocurrency views. Surprisingly, Warren showcased an unexpected willingness to engage in dialogues about digital assets.
