Ripple Chief Technology Officer David Schwartz recently joined the list of tech founders opposing Operation Chokepoint 2.0, a de-banking initiative targeting the cryptocurrency industry launched by the U.S. government.
Schwartz stated that the government is 'addicted to indirect regulation' and listed four reasons why de-banking undermines the rule of law.
He believes that de-banked entities will switch service providers or move funds underground, thereby completely evading monitoring and sanction controls. Furthermore, de-banking undermines due process, freedom of speech, and the rights against illegal searches and seizures. Schwartz wrote, 'It is precisely because of these drawbacks that our government is addicted to indirect regulation. Pressuring others to punish these entities is cheaper and easier than charging them with a crime and providing due process, but the government should not punish them without due process.'

He added, 'Pressuring banks to cut off undesirable businesses is easier than making those businesses illegal,' and urged the government to use legal, open, and transparent procedures to regulate businesses. (Cointelegraph)

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