Stuart Alderoty, Ripple’s General Counsel, took to Twitter to praise California Congressman Ro Khanna for his efforts in protecting depositors at Silicon Valley Bank (SVB) after its sudden collapse.
Stuart Alderoty, Ripple’s General Counsel, caught on Twitter to praise California Congressman Ro Khanna for his role in protecting depositors at Silicon Valley Bank (SVB) after its sudden collapse.
Alderoty expressed his gratitude to Khanna for his leadership in consolidating SVB depositors, adding that the bailout includes startups in various sectors including healthcare, climate change, AI, fintech, national security and even cryptography.
“Thank you @RoKhanna for your leadership in making SVB depositors whole. Some may decry ‘VCs and tech’, but that includes startups tackling critically important issues in healthcare, climate change, AI, fintech, national security, and yes, sometimes even crypto,” Alderoty tweeted.
Ripple’s top lawyer argues liability and regulatory loopholes need to be addressed, but depositors and their employees did nothing wrong and put their money in a bank that invested in debt guaranteed by the government. “It’s not risk taking, it’s conservatism,” he added.
As reported by U.Today, Ripple CEO Brad Garlinghouse has clarified the company’s position on its exposure to SVB. Garlinghouse confirmed that Ripple has some exposure to SVB as a banking partner and holds a portion of its cash balance.
However, he reassured investors that there would be no disruption to the company’s day-to-day operations, as they already held the majority of their dollars with a wider network of banking partners.
SVB’s recent collapse has caused panic in the tech industry, with reports suggesting that US officials are considering protecting all of Silicon Valley Bank’s deposits.
While some described the intervention as a bailout, officials stressed that it would not come at taxpayers’ expense and would be funded by fees banks pay to the Deposit Insurance Fund.