Ripple CEO Brad Garlinghouse revealed on Wednesday that Citigroup recently severed his personal banking relationship due to his prominent role in the cryptocurrency industry. Speaking at DC Fintech Week, Garlinghouse highlighted a growing issue where individuals in the crypto space are being “de-banked.”
“I personally have been de-banked,” Garlinghouse told the audience, explaining that this reflects a broader trend in which U.S. banks are distancing themselves from the crypto industry, under pressure from federal regulators.
In an interview with CoinDesk, Garlinghouse confirmed that Citigroup, where he had been a customer for 25 years, was the latest bank to cut ties with him. “They said, ‘You have five days to move your money,'” he recounted, adding that this was not his first experience losing a banking relationship due to his association with crypto. He noted the bank’s candor, saying, “They were super honest. They’re like, ‘Look, you are a notable person in crypto, and banking the crypto industry means more scrutiny from federal regulators.'”
Garlinghouse did not hold back in criticizing the current U.S. regulatory environment for cryptocurrency, specifically pointing to the Securities and Exchange Commission (SEC) and its chairman, Gary Gensler. He accused the SEC of leading a “reign of terror” against the crypto industry and called the U.S. Treasury Department and the Office of the Comptroller of the Currency (OCC) “hostile” to crypto.
Looking ahead to the U.S. presidential election next month, Garlinghouse expressed optimism that the future of crypto policy would improve, regardless of the outcome. “No matter what happens, we’re going to see a reset,” he said, suggesting that new appointments at key agencies such as the SEC, Treasury, and OCC would shape a more favorable regulatory landscape.
Garlinghouse also predicted that an exchange-traded fund (ETF) linked to XRP, Ripple’s cryptocurrency, was “inevitable” in his remarks.
As a prominent supporter of the Fairshake political action committee, a pro-crypto group heavily involved in the 2024 election cycle, Garlinghouse has actively campaigned against crypto-skeptical politicians. Although he has not endorsed either political party, he noted that his choice of a purple tie reflected neutrality.
Despite his optimism for the future of crypto regulation in the U.S., Garlinghouse offered sobering advice to crypto startups: “Incorporate outside the U.S.” He expressed frustration with the regulatory uncertainty that led to Ripple’s legal battle with the SEC. “I hate saying that,” he admitted, emphasizing his pro-American values, but said current conditions make it too risky for companies to operate in the U.S. without fear of lawsuits.
Citigroup declined to comment on the matter.
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