Ripple CEO’s 25-Year Bank Account Closed Amid Crypto Crackdown: What’s Next for U.S. Regulations?

Garlinghouse’s experience is just another example of the increasing regulatory heat on high profile crypto executives as institutions try to avoid federal scrutiny. He said other banks would take him on but this raises questions about the industry as a whole if this trend continues.

Ripple’s CEO has revealed that his 25-year-old bank account was closed due to his role leading a crypto company, underscoring rising regulatory pressures and uncertain U.S. policies. https://t.co/yqV7BMJV8e pic.twitter.com/8J5iuAV9qa

— Jim Perry (@mi_jim) October 28, 2024

Ripple’s Legal Battle with the SEC and Regulatory Challenges

Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC) has brought to light the changing regulatory landscape. In July a federal court ruled that XRP is not inherently a security – a win for the broader crypto industry in Garlinghouse’s view.

But he criticized the SEC’s inconsistent approach to different cryptocurrencies – particularly their hands off approach to bitcoin and ethereum vs Ripple.

The US regulatory uncertainty has led Garlinghouse to advise US fintech companies to consider moving abroad for more stable and favorable regulatory environments. He thinks without clear guidance the US will lose its strategic advantage in blockchain and other jurisdictions are already offering clearer paths for crypto innovation.

Anticipated Policy Shift and Global Perspective

Garlinghouse is hopeful for changes in the US regulatory landscape with the upcoming election. He thinks a new administration will bring more balanced policies towards crypto and innovation rather than stifling it. For companies like Ripple the global market is important and many countries are more welcoming to blockchain.

Ripple’s CEO has revealed that his 25 year old bank account was closed due to his role leading a #crypto company, underscoring rising regulatory pressures and uncertain U.S. policies.#ripple#xrp#THENEXTxBECKY #ParoNacional #SiamHalloween2024xZeeNuNew #Maynata #TVKVijay

— marshall (@thecryptosama) October 28, 2024

Ripple’s CEO says the US is making a strategic mistake by isolating crypto leaders through regulations. He thinks with blockchain playing a bigger role in the global economy the US needs to adjust or fall behind in fintech.

Key Takeaways:

• Ripple CEO’s bank account closed due to crypto regulatory scrutiny.

• Court ruling favors Ripple, declaring XRP is not a security.

• Garlinghouse advises U.S. fintech firms to consider foreign incorporation amid uncertain regulations.