Ripple CEO Garlinghouse Loses 25-Year-Old Bank Account Due to Crypto Ties

Ripple CEO Brad Garlinghouse Lost a 25-year bank account amid rising crypto checks, highlighting regulatory challenges crypto leaders face in traditional finance.

Ripple CEO Brad Garlinghouse recently revealed that Citigroup Inc. terminated his 25-year-old bank account, giving him only five days to withdraw his funds. The reason?

His high-profile role is in the crypto industry. This account closure highlights the increasing regulatory pressures executives face in cryptocurrency as traditional banks grow associations with notable crypto figures.

In a statement, Garlinghouse shared the bank’s reasoning, stating,” They were actually super honest, saying “Look, you are a notable people with crypto, and having notable people with crypto and banking the crypto industry means more inspection from federal regulators, so we don’t want it. ”While Garlinghouse noted that other banks are willing to provide services, he expressed concern that if more institutions take a similar stance, crypto leaders might struggle to retain access to traditional banking services.

Ripple’s Ongoing Legal Battle with the SEC

The bank’s action comes as Ripple faces regulatory challenges in the U.S., most notably in its high-profile case against the U.S. Securities and Exchange Commission (SEC). Recently, a court ruled that XRP is not a security, which Garlinghouse praised as a” pivotal win for the crypto industry.”

However, he criticised the SEC’s consistent regulatory bearing on assets like Bitcoin and Ethereum, urging for more transparent guidelines to support the cryptocurrency market’s growth.

Looking Forward: The Future of the U.S. Crypto Policy

Despite these challenges, Garlinghouse expressed optimism that the U.S. cryptocurrency policies may shift after the upcoming election, potentially creating a more favourable environment for crypto innovation. He advised establishing operations abroad, where regulatory frameworks may be more accommodating.

Garlinghouse further warned that the U.S. could miss out on critical advancements in Blockchain Technology if it fails to support the sector effectively.