Ripple, Cardano execs double down on their criticism of U.S banking system

• Ripple’s Brad Garlinghouse recently pointed out United States’ broken financial system in light of Silvergate, SVB episodes
• Cardano’s Charles Hoskinson also criticized the government’s position on crypto

Ripple CEO Brad Garlinghouse took to Twitter yesterday to set the record straight regarding his blockchain company’s exposure to the now-defunct Silicon Valley Bank. At the time, Garlinghouse revealed that there was “some exposure to SVB,” especially since it served as the banking partner for Ripple and held some of the firm’s cash balances. 

Crypto remains strong amid turmoil in traditional finance

Garlinghouse added that despite the turmoil in the United States banking system and the broader traditional finance markets, “Ripple remains in a strong position.”

He further pointed out that rumors and FUD led to the collapse of the banks and the inability of firms to move around their own funds. The latter, according to the exec, highlighted the plight of the country’s financial systems. 

Ripple CEO’s views on Twitter were cited by popular crypto-lawyer John Deaton who agreed with the need for a disruptive technology to modernize United States’ banking system. Ironically, Ripple already addresses these issues with its blockchain solutions for payments. 

The statements made by Garlinghouse resonated with fellow blockchain entrepreneur Charles Hoskinson, the man behind Cardano. Hoskinson recently pointed out the irony in the U.S. government’s unfair position on crypto. One where firms like Circle, Paxos and Tether, who have backed their stablecoins with cash and treasury bills, have been called risky. Meanwhile, when traditional banking institutions that held collateral in long-term TradFi bonds failed, the government found a way to blame crypto for the same. 

Ripple’s General Counsel Stuart Alderoty recently lauded the efforts of U.S Representative Ro Khanna. This, after the Congressman recommended an increase in the premium payments by banks to the Federal Deposit Insurance Corporation (FDIC) in order to protect depositors for payroll & regional banks and to prevent consolidation.

“Some may decry “VCs and tech” but this includes startups tackling hugely important problems within healthcare, climate change, AI, fintech, national security, and yes, sometimes even crypto,” he tweeted. For his part, Alderoty also called for a post-mortem of SVB’s collapse to determine accountability and address gaps in regulation of banks.