Ripple’s Brad Garlinghouse Forced to Close 25-Year Bank Account Due to Crypto Scrutiny

Ripple CEO Brad Garlinghouse has shared his recent experience of being “debanked” due to heightened regulatory pressure on cryptocurrency leaders. In an interview with CNBC, he recounted an unexpected call from a major bank he’d held an account with for over two decades, instructing him to “move your money within five days.” The bank was straightforward in explaining their decision, with Garlinghouse recalling them saying: “You are a notable person in crypto, and having notable people with crypto and banking the crypto industry means more scrutiny from federal regulators, so we don’t want it.”

Examining the Growing Pressures on Crypto and Banking Relationships

While Garlinghouse has access to other banking options, he expressed concern about the implications if more banks adopt similar policies. “Imagine if you extrapolate that out in more banks, and if I actually was cut off in the banking system for the sole reason that I’m the CEO of Ripple,” he added, referring to the increasing hostility toward crypto in the regulatory environment. He hinted at a potential policy shift, saying, “I think no matter what happens in this next election, we’ll have a reset.”

Recently, Garlinghouse confirmed that Citigroup Inc. was the bank in question. Despite this challenge, he remains optimistic about the future and encourages U.S. fintech companies to consider overseas incorporation for regulatory stability. He noted that some international jurisdictions already provide clear guidelines for crypto operations, which the U.S. may one day regret not having offered.

Addressing Ripple’s current legal case with the U.S. Securities and Exchange Commission (SEC), Garlinghouse celebrated a recent legal victory. The court ruled that “XRP in and of itself is not a security,” which Garlinghouse believes is a major milestone for the crypto industry. He criticized the SEC’s inconsistent handling of cryptocurrencies, including Bitcoin and Ethereum, emphasizing the urgent need for coherent guidelines. This ruling, he said, underscores the importance of regulatory clarity for the future of blockchain and cryptocurrency innovation in the U.S.