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Ripple CEO loses bank account amid regulatory scrutiny

Ripple CEO loses bank account amid regulatory scrutiny

GrafaGrafa2024/10/28 20:37
By:Mahathir Bayena

Ripple (CRYPTO:XRP) CEO Brad Garlinghouse revealed that his long-standing bank account of 25 years was recently closed due to his involvement in the cryptocurrency sector. 

In an interview with CNBC, Garlinghouse shared that a major banking institution gave him five days to withdraw his funds, citing increased scrutiny from federal regulators as the reason. 

“They were actually super honest,” Garlinghouse explained, quoting the bank as saying, “You are a notable person in crypto, and banking the crypto industry means more scrutiny from federal regulators, so we don’t want it.” 

While he acknowledged the legality of the decision, Garlinghouse expressed concern about the broader implications for the banking sector if more institutions adopt similar practices against crypto leaders. 

Garlinghouse noted that while other banks are still willing to provide services, the incident reflects the regulatory pressure faced by the cryptocurrency industry. 

He criticised the current U.S. administration’s stance, describing it as “hostile” towards the sector. 

However, he expressed optimism that the upcoming election could bring a reset in U.S. policy, potentially creating a more supportive environment for fintech and blockchain innovation. 

Addressing Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), Garlinghouse highlighted a significant court decision that ruled XRP, Ripple’s native token, “is not a security” in itself. 

At the time of reporting, the XRP price was $0.5141.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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