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

Ripple CTO David Schwartz recently joined the list of tech founders who oppose Operation Chokepoint 2.0, a debanking effort launched by the US government against the cryptocurrency industry. Schwartz said that the government is "addicted to indirect regulation" and listed four reasons why debanking undermines the rule of law. He believes that debanked entities will change service providers or move funds underground, thereby completely evading monitoring and sanctions controls. In addition, debanking undermines due process, free 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 to pressure others to punish these entities than to accuse them of crimes and give them due process, but the government should not punish them without due process." He added: "It is easier to pressure banks to cut off unwelcome businesses than to make these businesses illegal businesses," and urged the government to use legal, open and transparent procedures to regulate businesses. (Cointelegraph)