Ripple CEO Brad Garlinghouse says he was de-banked after Citibank cut ties with him due to his prominent role in the cryptocurrency sector. Speaking at DC Fintech Week, Garlinghouse stated that the bank gave him five days to move his funds before ending their 25-year relationship.
Brad Garlinghouse’s long-term relationship with the bank ended on short notice.
“Individuals within the crypto industry are being de-banked,” he said. “I personally have been de-banked.”
Not only Citibank, but some other traditional institutions have distanced themselves from individuals involved in crypto due to regulatory pressures.
Since the failures of crypto-friendly banks, including Signature Bank and Silvergate Capital, in early 2023, banks have turned increasingly cautious about their associations with crypto entities.
Hard On Ripple
Ripple CEO added that his personal experiences were part of the broad trend where industry figures and businesses are struggling to maintain banking relationships. He also slammed the Biden administration, particularly the SEC, Treasury, and OCC, for their “hostile” stance towards the industry.
The SEC is in the hot seat after several enforcement actions targeting US cryptocurrency businesses while delaying offering clear guidance. Garlinghouse and Ripple Labs are currently engaged in a long-year legal battle with the securities regulator, which has been just reignited following the SEC’s recent appeal.
Apart from Ripple, the list of targets have expanded to include Binance, Coinbase, Uniswap Labs, Consensys, and Crypto.com, to name a few.
Many crypto critics argue that the current regulatory environment resembles a coordinated effort—often referred to as “Operation Choke Point”—to discourage banks from working with crypto firms.
Gemini’s co-founder Tyler Winklevoss previously talked about the Fed’s enforcement actions against crypto-friendly Customers Bank, which he believed a part of “Operation Choke Point 2.0.” He suggested that regulators are systematically targeting the cryptocurrency industry to restrict its growth and access to banking services.
Winklevoss warned that if Vice President Kamala Harris were to win re-election, the regulatory environment for crypto could become even more hostile.
Harris promised in a recent campaign speech that she would establish a clear regulatory framework for digital assets to foster industry growth as well as to protect investors. However, her recent plan, which revealed her primary focus on protecting black investors, quickly sparked controversy.
Trump, on the other hand, is still positioning himself as a solid pro-crypto candidate. The former president has vowed to end the perceived unlawful crackdown on the crypto industry under the current administration.
Optimism for Future Policy
Despite ongoing challenges, Ripple CEO said he was optimistic about the future of cryptocurrency policy in the U.S., regardless of the outcome of the November presidential election.
Unlike Ripple’s Chris Larsen, who recently made a huge donation to Harris’ campaign, Garlinghouse’s stance is neutral. He believes the current regulatory climate will eventually improve with the upcoming change of leadership.
Despite political neutrality, Ripple CEO Brad Garlinghouse has publicly endorsed John Deaton in his campaign against Senator Elizabeth Warren. He praised Deaton as a strong advocate for the cryptocurrency community and criticized Warren for her regulatory stance on digital currencies.
Deaton is running for the U.S. Senate seat in Massachusetts, challenging Democratic Senator Warren. The pro-crypto advocate has gained a reputation for his active support in the SEC vs. Ripple lawsuit.
Unlike Deaton, Senator Warren is not a favorite candidate in the eyes of the crypto community. She has advocated for stricter regulations and has been vocal about her concerns about risks associated with digital assets.
The two candidates recently participated in their first face-off debate where numerous issues, including immigration, housing, and abortion rights, alongside their differing views on cryptocurrency, were discussed. Surprisingly, Warren seemed more open to discussing digital assets during the debate.
