Ripple CTO criticizes Operation Chokepoint 2.0: US government 'addicted to indirect regulation'

Ripple's Chief Technology Officer, David Schwartz, recently joined the list of tech founders opposing Operation Chokepoint 2.0, a decentralized action against the cryptocurrency industry initiated by the US government. Schwartz said the government is "addicted to indirect regulation" and listed four reasons for the de-banking to undermine the rule of law. It is believed that entities being de-banked will switch service providers or move funds underground to completely evade monitoring and sanctions. In addition, de-banking undermines due process, freedom of speech, and the right to oppose illegal searches and seizures. Schwartz wrote: "It is precisely because of these drawbacks that our government is addicted to indirect regulation. It is cheaper and easier for the government to pressure others to punish these entities than to charge them with crimes and give them due process, but the government should not punish them without due process."

In addition, it said, "Pressuring banks to cut off unwanted business is easier than classifying these businesses as illegal," and urged the government to regulate businesses using legal, transparent procedures. (Cointelegraph)