- According to Schwartz, the government is addicted to indirect regulation.
- Tech entrepreneurs have now taken to social media to discuss their debanking experiences.
Operation Chokepoint 2.0 is a government-run debanking campaign targeting the cryptocurrency sector, as per David Schwartz, chief technical officer of Ripple, is among the industry executives who have spoken out against it. According to Schwartz, the government is “addicted to indirect regulation.” And de-banking causes the rule of law to be undermined for four reasons.
Debanked businesses, according to Schwartz, either change service providers. Or move their money underground, making them immune to fines and monitoring. Along with the rights to due process, free expression, and protection from arbitrary government intrusion, the CTO said that de-banking violates these principles.
Derailing Crypto Economy
The CTO went on to say that it’s simpler to get banks to stop doing business with certain companies than to outright prohibit them. And he pleaded with the government to regulate firms in a legal and transparent way.
Moreover, tech entrepreneurs have now taken to social media to discuss their debanking experiences, and venture investor Mark Andreesen claims that over 30 tech companies were impacted by Operation Chokepoint 2.0.
Also, among the prominent persons who have spoken out is Sam Kazemian, founder of Frax Finance. Who said that in December 2022, JPMorgan Chase debanked him.
Nic Carter, a partner at Castle Island Ventures, came clean in September 2024 about the Biden administration’s plan to derail the cryptocurrency economy. By destroying Silvergate Bank, a prominent institution for crypto banking.
Furthermore, Coinbase CEO and co-founder Brian Armstrong is now assembling documents related to Operation Chokepoint 2.0. That he petitioned the government for under the Freedom of Information Act (FOIA). The crypto sector has been the target of regulatory animosity for years. But industry leaders are hopeful that the Trump administration will change that.
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