Ripple's top executive, Brad Garlinghouse, revealed a surprising break de-banked when Citibank decided to sever relations due to his significant presence in the crypto industry. In a talk during DC Fintech Week, Garlinghouse mentioned that the bank provided him only a five-day window to transfer his funds before ending their long-standing partnership.
The abrupt end to Brad Garlinghouse's extensive association with the bank.
“Crypto industry figures are being pushed out of the banking system,” he expressed. “I've personally faced this de-banking.”
Beyond Citibank, other conventional banks have similarly distanced themselves from crypto-related individuals, driven largely by compliance concerns.
As banks that were once crypto-friendly, like Signature Bank and Silvergate Capital, faced difficulties in early 2023, the banking sector has grown increasingly wary of engaging with digital currency firms.
Hard On Ripple
The Ripple CEO further illustrated that his experiences aren't isolated, but symptomatic of a larger movement where key players in the sector find their banking ties under threat. He didn't spare criticism for the Biden administration either, pointing a finger at agencies like the SEC, Treasury, and OCC for their stern stance against crypto growth.
The SEC has come under scrutiny following a series of legal moves against U.S. crypto businesses without offering substantial regulatory clarity. Garlinghouse and Ripple Labs remain embroiled in an ongoing legal tussle with the SEC, a battle reignited by recent appeals.
Ripple isn't alone; companies like Binance, Coinbase, Uniswap Labs, Consensys, and Crypto.com are also on the regulatory radar.
Some believe the heavy regulatory environment is reminiscent of a strategy termed “Operation Choke Point,” meant to discourage banks from associating with crypto enterprises.
Tyler Winklevoss, co-founder of Gemini, previously spoke about measures against crypto-friendly banks like Customers Bank, viewing these as part of a newly termed “Operation Choke Point 2.0.” He suggested regulators aim to systematically hinder the crypto space's access to traditional banking.
Winklevoss also speculated that if Kamala Harris were re-elected, challenges for the crypto sector might intensify due to stricter regulatory actions.
In contrast, Harris talked about crafting a transparent rulebook for digital assets to encourage growth while safeguarding investors, though her focus on protecting black investors stirred debate.
Meanwhile, Trump has been vocal as a crypto ally, promising to halt what he sees as unduly harsh regulatory approaches under current governance.
Optimism for Future Policy
Facing obstacles, Ripple's CEO remains hopeful about the future of crypto policies in the U.S., irrespective of the presidential election outcome looming in November.
Brad Garlinghouse, unlike Ripple co-founder Chris Larsen, who backed Harris financially, adopts a neutral position, believing that a change in leadership might usher in a more favorable regulatory atmosphere.
Despite maintaining a balanced stance politically, Ripple CEO Garlinghouse publically supported John Deaton's campaign opposing Senator Elizabeth Warren. He commended Deaton for his firm advocacy for crypto while criticizing Warren's restrictive approach.
Deaton is vying for a Massachusetts Senate seat, challenging the Democratic incumbent Warren. He's well-known for his engagement in the Ripple vs. SEC case.
With Deaton less favored by Warren among crypto enthusiasts, she advocates for more stringent digital asset regulations due to potential risks.
In a recent face-off, the two candidates debated over a host of issues, including their differing takes on cryptocurrencies. Interestingly, Warren appeared more willing to engage in discussions about digital finance.
