Ripple’s chief legal officer, Stuart Alderoty, has highlighted what he sees as a calculated effort by U.S. regulators to stifle the cryptocurrency industry. In recent years, the crypto industry has faced significant challenges due to what many call “Operation Chokepoint 2.0,” a coordinated effort by U.S. regulators to restrict banking services for crypto-related businesses.
Alderoty shared on social media platform X on Saturday his perspective on Operation Chokepoint 2.0, referencing a 2012 initiative where agencies like the Federal Deposit Insurance Corporation (FDIC), Federal Reserve, and Office of the Comptroller of the Currency (OCC) reportedly pressured banks to halt services to specific industries, including gun retailers and payday lenders. Alderoty argued that crypto has now become the primary focus of similar tactics, stating:
In 2012, regulators (FDIC, OCC, Fed) weaponized banks against disfavored industries (gun stores, payday lenders, etc.) under the original ‘Operation Chokepoint.’ Fast forward to 2021: crypto is the new target.
Outlining key events, Alderoty pointed to the January 2021 rescission of the Fair Access to Banking Rule under the Biden administration, which had sought to ensure equal financial access. Later that year, in November, the OCC mandated pre-approval for banks engaging in cryptocurrency activities through Interpretive Letter 1179. The FDIC followed suit in April 2022 with its own directives. In January 2023, the Federal Reserve, FDIC, and OCC issued warnings about “crypto risks,” with further advisories in February. While these notices claimed banks were not explicitly barred from serving crypto clients, Alderoty saw a deeper intent.
The Ripple legal chief previously served as General Counsel at CIT Group and HSBC North America Holdings. Pointing to his experience as a bank general counsel, Alderoty stressed:
These warnings include the boilerplate: ‘Banks are not discouraged from serving crypto customers.’ As a former bank GC, I can decode that: ‘Don’t even think about it.'”
He contended that such language is a veiled deterrent aimed at discouraging financial institutions from maintaining relationships with crypto businesses. Ripple’s CLO framed these developments as part of a broader campaign to marginalize the cryptocurrency industry under the guise of regulatory caution.
Industry leaders, including Marc Andreessen, co-founder of Andreessen Horowitz, have reported that over 30 tech and crypto founders have been “debanked” in the past four years, forcing some to leave the country or change industries. Gemini co-founder, Tyler Winklevoss, shared on X Saturday: “Operation Chokepoint 2.0 is a coordinated conspiracy by government officials to persecute their political opponents by debanking them. This is a federal crime that is ongoing and should be prosecuted.”
