According to CoinDesk, Ripple CEO Brad Garlinghouse revealed on Wednesday that his personal banking relationship with Citigroup was terminated due to his involvement in the crypto sector. Speaking at DC Fintech Week in Washington, Garlinghouse shared that Citigroup, with whom he had been a customer for 25 years, severed ties, citing regulatory scrutiny associated with notable figures in the crypto industry.
U.S. Banks Cutting Ties with Crypto Figures
Garlinghouse’s experience underscores a broader trend in the U.S. financial industry, where banks are increasingly wary of crypto-related accounts. “Individuals within the crypto industry are being de-banked,” Garlinghouse remarked, reflecting on the growing caution among financial institutions following regulatory pressures. He also revealed that Citigroup had given him only five days to move his funds, emphasizing the bank’s concern over heightened federal oversight.
Criticism of Biden Administration's Crypto Policies
Garlinghouse criticized the current administration’s handling of crypto regulation, describing SEC Chair Gary Gensler’s tenure as a “reign of terror.” He further accused the U.S. Treasury Department and the Office of the Comptroller of the Currency (OCC) of adopting a “hostile” stance toward the crypto sector. However, he expressed optimism about the upcoming U.S. presidential election on November 5, 2024, believing that it could signal a policy reset for the crypto industry.
Future Outlook: XRP ETF and Political Implications
Garlinghouse predicted that an exchange-traded fund (ETF) linked to XRP is “inevitable,” despite regulatory uncertainties. He also mentioned Ripple's support for the Fairshake PAC, a pro-crypto political group active in the 2024 elections. While Garlinghouse has personally opposed Sen. Elizabeth Warren’s re-election campaign, he refrained from endorsing either major political party, signaling his focus on broader industry interests.
Advice for Crypto Startups: Go Global
When asked about advice for crypto startups, Garlinghouse candidly suggested incorporating outside the U.S. due to legal uncertainties, as evidenced by Ripple’s ongoing lawsuit with the SEC. “I hate saying that,” he admitted, noting his pro-U.S. stance, but emphasizing the unpredictable regulatory landscape in the U.S. remains a significant challenge for crypto businesses.
A Citigroup spokesperson has not yet commented on the situation.
