Ripple CEO talks about personal problems with banks over cryptocurrency ties. What are they like?
The rivalry between banks and the cryptocurrency industry can sometimes reach the point of absurdity, with the traditional banking system even taking aim at individuals on occasion. Ripple CEO Brad Garlinghouse was among them. During the DC Fintech Week event in Washington, D.C., he shared the story of a terrible relationship with Citi Bank. It turns out that the executive was almost completely cut off from providing normal banking services for his role in the development of the blockchain project.
This week, Brad Garlinghouse also touched on the topic of engaging with regulators. According to him, the lack of such work earlier turned out to be a serious mistake, and now Ripple representatives are trying to “make up for lost time”.
The head of Ripple noted that recently he visited Washington much more often than during the last years before that. Here’s the entrepreneur’s comment.
I look back and regret it. I think we made a mistake by not taking action sooner.
Ripple CEO Brad Garlinghouse
At the same time, he emphasised that the reputation of the industry was somehow worsened by the former head of crypto exchange FTX, Sam Bankman-Fried.
The situation is also not improved by the fact that Sam Bankman-Fried visited the Capitol in cargo shorts, offering something that was not quite what it actually appeared to be.
How banks are defending themselves against competitors
The head of Ripple kicked off the discussion with an issue that isn’t often addressed in the public space of the cryptocurrency industry. Here’s his rejoinder, as quoted by CoinDesk.
Individuals in the crypto industry are being unbanked. Even I have personally been in this situation.
Ripple executive Brad Garlinghouse
Garlinghouse also cited a terrible trend in the industry, which is finding it difficult to maintain ties with banks as regulators restrict mutually beneficial co-operation.
Later in the interview, Brad added that the institution that recently stopped working directly with him was Citigroup Inc. Garlinghouse had been a customer of that bank for about 25 years.
They said I had five days to wire the money. They were surprisingly honest. They told me that I was a well-known person in the crypto industry, and well-known personalities and involvement in crypto attract more attention from federal regulators.
Changes in the value of the XRP cryptocurrency over the course of a year
The CEO criticised President Joe Biden’s administration and said that Securities and Exchange Commission (SEC) Chairman Gary Gensler is leading a “regime of terror”. He also accused the US Treasury Department of being “hostile” to the industry.
That said, Brad is confident that regardless of the outcome of next month’s presidential election, the future of crypto regulation in the US will be much better.
Recall, Garlinghouse and Ripple are among the main sponsors of the Fairshake political committee, which has become one of the dominant forces in campaign finance for the 2024 election.
At the same time, it became known the day before that Ripple co-founder Chris Larsen is supporting Kamala Harris in the upcoming US presidential election. In particular, at the end of August, the entrepreneur donated a million dollars in the cryptocurrency XRP to a special organisation that allocates funds for Democrats. Well, this week he reported about the allocation of already 10 million dollars in the mentioned coin.
US Vice President Kamala Harris
The main indicator of the next president’s administration’s policies will be who he appoints to top federal regulatory and economic positions. The Ripple executive continues.
That will set the direction for the next four years. Either way, we will be in a better position.
Overall, Garlinghouse is trying to remain neutral on the issue of politics. During the conference, he briefly characterised the campaign of Kamala Harris, who deserves more attention regarding crypto.
Still, Trump’s stance on digital assets is very clear – one thing that deserves a special mention is the firing of Gary Gensler as chairman of the Securities Commission, which Donald plans to do on day one if he wins.
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Here’s a quote from the head of Ripple on the matter, as cited by Decrypt.
Apparently, Trump entered the race early and very aggressively. He has declared that he is the “crypto president”. Kamala and her team have shown more nuance in their policies.
Dynamics of the odds of winning the election according to Polymarket statistics
The head of Ripple praised Harris for her previous statements about her willingness to support the creation of a regulatory framework to govern cryptocurrencies if elected.
At the same time, Garlinghouse acknowledged that Vice President Harris has been “relatively quiet” on cryptocurrencies compared to Trump, causing him to describe the Democratic nominee as a leader for supporting the technology.
The prospects of Kamala’s stance on the cryptocurrency industry, however, are questionable. After all, she has been the Vice President of the United States for almost four years, and during this period she has not improved the situation in the niche of digital assets. However, members of the Democrat team are still trying to position Harris as a “new page” in American politics, which in general does not sound the most convincing.
It seems that some banks really don't want problems from regulators because of the latter's attitude towards the digital asset industry. Fortunately, this is not relevant for all companies. In addition, coins are becoming more and more popular in the world, which is also in favour of their holders.
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