Key Takeaways
- Ripple CEO says operation chokepoint 2.0 is very real, and he has been a victim himself.
- Brad Garlinhouse claimed Citibabank terminated his bank account after 25 years.
- Garlinhouse hopes the new administration will be pro-crypto.
Ripple CEO Brad Garlinghouse has become an unlikely poster child for the industry’s frustration with the banking system. In a recent interview with CNBC, Garlinghouse revealed that he was debanked for his ties to the crypto industry.
This experience, he claimed, is a stark example of “Operation Chokepoint 2.0.” The Ripple CEO joins a growing list of crypto executives who have been debanked, underscoring the industry’s struggle to access traditional banking services.
25 Years of Service, Gone
Garlinghouse recalled receiving a sudden five-day notice from Citibank to vacate his account, which had been in good standing for over two decades.
“I got a call from one of the major banking institutions I had an account with for 25 years, and they said you have five days to move your money,” he said, still incredulous.
The Ripple CEO’s ordeal highlights the plight of crypto companies, which are often viewed as high-risk by banks and regulators.
Operation Chokepoint, a program launched by the U.S. Department of Justice in 2013, targeted banks that did business with companies suspected of money laundering and fraud.
However, critics argue that the initiative has morphed into a broader crackdown on the crypto industry.
Many in the crypto community believe that the Biden administration has revived a similar initiative, forcing banks to sever ties with crypto firms.
While the administration has denied such claims, Garlinghouse’s experience suggests otherwise.
The Ripple CEO is not alone in his concerns; several crypto-friendly banks have collapsed in recent years, further straining the industry’s relationships with traditional financial institutions.
Garlinghouse’s Election Hopes and Crypto Dreams
As the U.S. presidential election approaches, the crypto industry is holding its breath, hoping for a more sympathetic ear from the incoming administration.
Garlinghouse expressed optimism that the next Congress will be more pro-crypto, regardless of who wins the presidency.
While Donald Trump has been vocal about his support for crypto, Kamala Harris has taken a more nuanced stance.
However, Garlinghouse emphasized that the appointments to key regulatory positions, such as the Treasury, Commodity Futures Trading Commission (CFTC), and Securities and Exchange Commission (SEC), will ultimately shape the industry’s future.
“I think it’ll tell us what the direction of travel is for the next four years, but again, I’ll emphasize anybody who doesn’t believe no matter what, we’re going to end up in a better place.”
During the interview, the Ripple CEO harshly reprimanded Gary Gensler, the current SEC chairman, whom he accused of being “devastating” to the crypto industry.
“I don’t think you can do worse than Gary Gensler. I think he’s that bad for the industry it’s just I don’t think he’s playing fair by the rules I think he’s been disingenuine with the industry, I don’t know I can’t say enough negative things.”
Gensler’s tenure has been marked by a series of high-profile enforcement actions against crypto companies, including Ripple.
Despite the challenges, Garlinghouse remained upbeat about the industry’s prospects, citing the recent court ruling in favor of XRP as a major victory.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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