Ripple CEO Says He Was Debanked Due to His Crypto Ties

Ripple CEO Brad Garlinghouse has shared his personal encounters with US banks, noting a pattern of skepticism due to his involvement with cryptocurrencies.

In a virtual interview with Bloomberg at DC Fintech Week, he noted that he and other individuals strongly affiliated with the crypto industry have faced discriminatory treatment from banks while pursuing their personal businesses. Notably, he stated that financial institutions have debanked him several times due to his crypto ties.

Garlinghouse Shares Recent Encounter with Citigroup

The Ripple CEO revealed that his recent debanking scenario happened with one of the largest American banks, Citigroup. Garlinghouse noted that the leading financial institution told him to move his funds elsewhere after 25 years of banking with them.

According to him, Citigroup gave him three days to withdraw his funds, citing his strong involvement with the crypto industry. The Ripple boss noted that the bank took this action to avert excessive regulatory scrutiny by US regulators.

Notably, Garlinghouse stated he was not the only crypto leader facing the dilemma. He stressed that “individuals within the crypto industry are being de-banked,” as federal regulators have instructed financial institutions to sever their ties with digital assets and players involved in the nascent sector.

Ripple CEO Bemoans the Current US Regulatory Cloud

Furthermore, Ripple blamed the current dark US regulatory cloud on the White House. He argued that President Joe Biden has encouraged regulation by enforcement on the crypto sector, encouraging regulators to go after the digital assets industry.

Garlinghouse also called out the US Securities and Exchange Commission chair, Gary Gensler, for facilitating innovation scuffing in the States. He further blamed the hash crypto regulatory climate on the Treasury Department and offices regulating the banking sector.

Meanwhile, Garlinghouse expressed confidence that the unrest will be over soon, pointing to the November presidential election. He stated that the crypto industry will be better regulated regardless of the polling outcome.

Regulation Discouraging Crypto Start-ups

When quizzed about what he would advise crypto startups to do, the Ripple boss encouraged them to move abroad, where there is better regulation. He said that the unclear enforcement in the US could stiffen these startups’ growth.

Notably, Garlinghouse ruled out the possibility of a Ripple initial public offering in the US last month, citing the same regulatory tussle. However, he noted he and his company will keep fighting until the coast is clear.

Meanwhile, the Ripple boss also told Bloomberg that an XRP ETF was inevitable. He cited the growing institutional adoption of XRP and the impending regulatory shift as reasons behind his insistence.