Ripple's Chief Legal Officer Exposes US Regulators' Hidden War on Cryptocurrency
Ripple's Chief Legal Officer exposes US regulators' hidden war on cryptocurrency. He stressed that he believes US regulators are making a concerted effort to curb the crypto industry.
The crypto industry has faced significant challenges in recent years due to what many are calling “Operation Chokepoint 2.0,” a coordinated effort by U.S. regulators to restrict banking services for cryptocurrency-related companies.
Alderoti shared his thoughts on Operation Chokepoint 2.0, referring to a 2012 initiative in which agencies such as the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency (OCC) reportedly pressured banks to stop serving certain industries, including gun retailers, microfinance lenders, and the like.
Alderothi said cryptocurrency has now become the mainstream focus of such tactics: In outlining key events, Alderothi pointed to the Biden administration's repeal in January 2021 of the Fair Banking Access rule, which sought to ensure equal access to financial services.
Later that year, in November, the OCC required banks involved in cryptocurrency activities to obtain pre-approval in Interpretive Letter 1179.
In April 2022, the FDIC followed suit with its own guidance. In January 2023, the Federal Reserve, FDIC, and OCC issued warnings about “crypto risks,” with additional guidance in February. While these notices asserted that banks were not explicitly prohibited from serving cryptocurrency customers, Alderoti saw a deeper meaning.
These warnings include the standard wording: “Banks are discouraged from serving crypto clients.” As a former bank CEO, I can translate that to: “Don’t even think about it.”
He argues that such language is a veiled deterrent aimed at discouraging financial institutions from doing business with crypto businesses.
Ripple's CEO called the events part of a broader campaign to marginalize the cryptocurrency industry under the guise of regulatory precautions.
Industry leaders including Marc Andreessen, co-founder of Andreessen Horowitz, said more than 30 tech and crypto founders have gone “bankrupt” over the past four years, forcing some to leave the country or change industries.
Gemini co-founder Tyler Winklevoss said recently:
“Operation Chokepoint 2.0 is a coordinated conspiracy by government officials to persecute their political opponents by exposing them. It is a federal crime that is ongoing and must be investigated.”
The most interesting thing in this whole story is that this speech by the former bankster is just a PR stunt designed to show that XRP is the same cryptocurrency as, for example, Bitcoin.
For reference: Ripple's head of legal previously held the position of chief legal counsel at CIT Group and HSBC North America Holdings. That is, he is a typical bankster mafia manager (and there are practically no others at Ripple Labs).
We are being prepared to accept XRP as the basic technology of future CBDCs. And the most interesting thing is that such popularization has had its result from the opposite. The darkest simulacra of the crypto XLM, XRP, HBAR suddenly took off and continue to grow. And you can even make money on this. But the hangover will be severe.
Gennady M
