As a seasoned analyst with over two decades of experience in the financial industry, I find the recent revelations by Ripple CEO Brad Garlinghouse about his struggles with top banking institutions intriguing. Having navigated through various regulatory landscapes and market cycles, I can empathize with his frustration, albeit on a smaller scale. The fact that an established figure like Garlinghouse has faced “de-banking” due to crypto affiliation underscores the ongoing challenges in this nascent industry.
During a talk at the DC Fintech Week event in Washington, Ripple‘s CEO Brad Garlinghouse admitted that major banks such as Citibank declined to work with him due to his involvement with cryptocurrency. He further stated that people within the crypto industry often experience being cut off from banking services, and he personally has faced this issue.
In addition, he divulged his personal insights about the US financial sector, where strict regulatory measures hindered banks from collaborating with Ripple. Notably, the ongoing lawsuit between the SEC and Ripple has persisted for approximately four years. Moreover, several prominent crypto trading platforms chose to remove XRP from their listings.
In a recent turn of events, Citi Bank has chosen to discontinue their services to Garlinghouse, who had been a customer for a remarkable 25-year period. To clarify, this is in reference to Citi Bank. The CEO of Ripple, Garlinghouse, made these remarks.
They advised, ‘You need to transfer your funds within five days. To be clear, they were completely upfront about it. They essentially conveyed, ‘You’re a significant figure in cryptocurrency, and when influential individuals are involved in the crypto industry, it invites increased scrutiny from federal authorities.’
Later on, he too criticized the Joe Biden administration and described SEC Chair Gary Gensler’s leadership as a “tyranny”. Yet, despite this, Garlinghouse remains hopeful that things will improve with Kamala Harris’s pledges regarding crypto. “Regardless of what transpires,” he stated, “we’ll witness a shift or change.
The way the incoming government plans to handle cryptocurrencies can be inferred by their selections for roles at departments such as the Securities and Exchange Commission (SEC), the Treasury Department, the Office of the Comptroller of the Currency (OCC), and the Commodity Futures Trading Commission (CFTC).
Regardless of the circumstances, we’ll undoubtedly find ourselves in a superior position. Reflecting on this phase in American history from a cryptocurrency perspective will likely seem like just a minor hiccup, according to his statement.
Ripple CEO Confident of XRP ETF
With Ripple’s legal dispute against the U.S. Securities and Exchange Commission (SEC) moving forward, Brad Garlinghouse expresses high optimism that an XRP exchange-traded fund (ETF) will eventually become a reality. Referring to the substantial investments pouring into Bitcoin ETFs, he stated:
It’s quite evident that there’s a strong interest, both from institutional investors and retail buyers, in gaining access to this investment category.
Just recently, I learned about two exciting developments in the crypto space that have me quite optimistic. Bitwise Asset Management Inc., a company I closely follow, was the pioneer in submitting a filing to the SEC for an Exchange-Traded Fund (ETF) tracking XRP, the world’s seventh-largest digital token. Hot on their heels, Canary Capital Group – another investment firm specializing in digital assets – also filed for the launch of its own Canary XRP ETF. These filings signal a growing interest and acceptance of XRP within traditional financial markets, which could potentially lead to increased liquidity and broader exposure for XRP investors like myself.
The Ripple CEO added that the demand for crypto ETFs clearly suggests at the rising institutional participation in the market. “It creates upwards pressure on the prices for many different cryptos, including XRP,” he said.
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2024-10-24 12:27