Stuart Alderoty, the General Counsel at Ripple, took to Twitter to express his admiration for California congressman Ro Khanna, who played a vital role in protecting depositors at Silicon Valley Bank (SVB) following its sudden collapse. Alderoty commended Khanna’s leadership, thanking him for making SVB depositors whole, including startups in various sectors such as healthcare, climate change, AI, fintech, national security, and even crypto.
Although Ripple’s top lawyer acknowledged the need for accountability and regulatory improvements, he emphasized that depositors and their employees had done nothing wrong and entrusted their money to a bank that invested in government-backed debt. He argued that this wasn’t risk-taking, but rather conservatism.
Meanwhile, Ripple CEO Brad Garlinghouse clarified the company’s exposure to SVB, confirming that Ripple had some exposure to SVB as a banking partner and held some of its cash balance. However, Garlinghouse reassured investors that there would be no disruption to the company’s day-to-day business, as they held the majority of their USD with a broader network of bank partners.
The collapse of SVB has sparked concern in the technology industry, with reports suggesting that US officials are contemplating protecting all deposits at Silicon Valley Bank. While some view it as a bailout, officials have emphasized that it will not come at the taxpayers’ expense and will be funded by the fees that banks pay into the Deposit Insurance Fund.