Ripple CEO Brad Garlinghouse revealed that he has been personally severed from his longtime banking relationship with Citigroup because of his role in the crypto industry.
Speaking at DC Fintech Week in Washington, Garlinghouse shared that the U.S. crypto industry is facing increasing challenges in maintaining banking ties, as regulators urge institutions to distance themselves from crypto-related entities.
Garlinghouse stated that Citigroup, where he had been a customer for over 25 years, gave him just five days to move his funds. “They were actually super honest,” he noted, explaining that the bank cited his status as a key figure in the crypto space as the reason for heightened scrutiny from federal regulators. This isn’t the first time he has lost a personal banking relationship due to his involvement in crypto.
The Ripple CEO was highly critical of the current regulatory environment in the U.S., particularly the approach taken by SEC Chair Gary Gensler, whom he accused of leading a “reign of terror” against the industry. He previously claimed that SEC Chair Gary Gensler could be responsible for President Joe Biden’s loss in the upcoming U.S. presidential election. Gensler highlighted non-compliance in the crypto industry, stating that leading figures from a few years ago are now in jail or facing legal troubles.
Ripple CEO also pointed fingers at the U.S. Treasury Department and the Office of the Comptroller of the Currency (OCC) for being hostile toward crypto. Despite this, he is optimistic that the U.S. presidential elections would lead to a “reset” in crypto policy, regardless of the outcome, predicting that the future regulatory environment will be more favorable.
Garlinghouse also stated that an exchange-traded fund (ETF) tied to XRP, Ripple’s cryptocurrency, is “inevitable.” He also highlighted his involvement with the pro-crypto Fairshake political action committee, which has become a dominant force in the 2024 U.S. elections.
Although he did not endorse a specific political party, Garlinghouse voiced support for the political opponent of crypto critic Sen. Elizabeth Warren.
The SEC and Ripple have been in a legal battle since 2020 when the SEC accused Ripple of raising $1.3 billion through the sale of XRP, which it claims is an unregistered security.
