Citibank Debanks Ripple CEO Garlinghouse Due to Crypto Influence

Ripple CEO Brad Garlinghouse recently disclosed that Citigroup Inc. ended its 25-year banking relationship with him due to his prominent role in the crypto industry. 

In a recent appearance at the Washington DC Fintech Week, Garlinghouse highlighted that this move reflects a broader trend in the US, where individuals and businesses in the crypto sector are being de-banked. He noted that regulatory caution has led financial institutions to limit their crypto exposure.

The Ripple executive stated that this is not the first time a bank has cut ties with him because of his involvement with crypto. He explained that financial institutions like Citigroup encounter increased scrutiny from federal regulators when engaging with prominent figures or companies in the crypto space.

Change in Crypto Policy

Garlinghouse criticized the current regulatory environment under President Joe Biden’s administration, explicitly mentioning SEC Chair Gary Gensler for what he characterized as a “reign of terror.” He claimed that the US Treasury Department and the Office of the Comptroller of the Currency (OCC) have adopted a “hostile” stance toward the crypto industry. Despite these challenges, he suggested that the upcoming presidential election could change crypto policy, regardless of the election results.

“No matter what happens, we’re going to see a reset,” Garlinghouse stated.

He also emphasized that the direction of future crypto regulations would largely depend on key appointments to agencies like the SEC, Treasury, OCC, and CFTC. 

Spot XRP ETF Approval is “Inevitable”

Garlinghouse also discussed the potential for an exchange-traded fund (ETF) based on the spot price of XRP, asserting it was “inevitable.” Crypto investment firms, including Canary Capital and Bitwise, are awaiting the SEC’s approval for a spot XRP ETF.

If approved, the XRP ETF would offer institutional investors a regulated avenue to gain exposure to the digital asset, potentially boosting liquidity and token adoption.

Ripple has actively supported pro-crypto political initiatives, backing the Fairshake political action committee, a major force in the 2024 elections. Furthermore, Ripple’s co-founder Chris Larsen publicly endorsed US presidential candidate Kamala Harris. According to a Federal Election Commission (FEC) filing, Larsen donated $1 million in XRP to a super PAC supporting Harris’ campaign in August.