Brad Garlinghouse, CEO of Ripple, has publicly stated that Citibank terminated his personal banking relationship. According to Garlinghouse, the decision was driven by his prominence in the crypto sector.
The disclosure was made by Blockchain News Daily, a news account on X, which reported that Garlinghouse received a notification from Citibank instructing him to relocate his funds within five days.
Garlinghouse stated, “They were actually super honest. They’re like, ‘Look, you are a notable person in crypto, and having notable people in crypto, and banking the crypto industry means more scrutiny from federal regulators.'”
Community Outrage Over Citibank’s Actions
This incident drew strong reactions from the crypto community. Many community members expressed discontent with the banking industry’s stance toward cryptocurrency professionals.
One user remarked, “But banks can launder money for drugs, human trafficking and that is ok…” He expressed his strong hatred for banks and noted that decentralization is the “only way,” likening it to keeping money under your pillow but with the option to earn while the money is safe and close to you.
Another user commented, “There are people not willing to give up their power. That’s essentially what is happening.” The reaction highlights a broader sentiment of distrust and frustration toward traditional banking institutions, which are resistant to the growing influence and adoption of cryptocurrencies.
This sentiment is further fueled by the contrasting treatment of other prominent individuals in the industry. For instance, another user questioned if Chris Larsen, co-founder of Ripple and a significant supporter of current Vice President Kamala Harris, received similar treatment.
Larsen recently donated $10 million to Harris’ campaign, following other notable donations, and the community member is hinting at potential bias based on political affiliations.
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The Challenges Faced By Crypto Holders
Garlinghouse’s revelation highlights the ongoing challenges faced by individuals and entities involved in the cryptocurrency sector. Despite the increasing mainstream acceptance of digital currencies and blockchain technology, the regulatory landscape remains complex and often unfriendly.
The U.S. Securities and Exchange Commission (SEC) has consistently gone after Ripple and XRP, and other financial institutions are under pressure from federal regulators. These actions raise questions about the balance between regulatory compliance and the need to foster innovation.
However, the unnecessary regulatory scrutiny might be nearing its end. A crypto pundit recently shared reasons why XRP holders should be excited about a Donald Trump presidency, and this extends to the broader crypto market.
A new administration would bring significant change, potentially freeing the crypto market to pursue innovation and bring lasting change. It would also end unfair practices like Citibank’s action against Garlinghouse.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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