Ripple’s CEO Brad Garlinghouse has recently faced a setback as his 25-year-old bank account was closed, leaving him with just five days to withdraw his funds. The closure of his account was attributed to his role as the leader of a cryptocurrency company, highlighting the increasing regulatory pressures and uncertain policies surrounding the crypto sector in the United States.
In an interview with CNBC, Garlinghouse shared the details of his account closure, stating that he received a call from one of the major banking institutions he had been associated with for over two decades. The bank informed him that he needed to move his money within five days. When questioning the reason behind this decision, the Ripple CEO revealed that the bank was explicit in stating that his involvement in the crypto industry attracted more scrutiny from federal regulators, which they wanted to avoid.
Garlinghouse emphasized that such actions were not legal, but admitted that he still had access to other banks. However, he raised concerns about the broader implications if this were to happen to other banks as well. He described the situation as a hostile administration and expressed his belief that regardless of the outcome of the next election, there would be a reset in the relationship between the banking system and the cryptocurrency industry. He later confirmed that Citigroup Inc. was the institution responsible for his account closure.
Despite this setback, Garlinghouse remains optimistic about future regulatory changes. He predicted that there would be a shift in U.S. policy after the upcoming election, leading to a more favorable environment for crypto innovation. He advised fintech companies based in the U.S. to consider foreign incorporation to ensure regulatory stability, as several jurisdictions already offer clearer guidance for the crypto sector. Garlinghouse also suggested that the U.S. may eventually realize the missed strategic opportunity in failing to embrace blockchain technology as an essential component of the evolving financial landscape.
In addition to discussing his account closure, Garlinghouse addressed Ripple’s ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). He highlighted a significant court decision that deemed Ripple’s cryptocurrency, XRP, not to be a security. This ruling was seen as a pivotal victory for the crypto industry. Garlinghouse criticized the SEC for its inconsistent approach in regulating cryptocurrencies like bitcoin and ethereum and emphasized the need for clearer and more reliable guidelines.