Ripple CTO "The government is addicted to indirect regulation"

David Schwartz, Ripple CTO (first from the left), speaks at a press conference held at the Grand Intercontinental Seoul Parnas in Gangnam-gu, Seoul, on September 3rd. /Photo=Jinwook Blue Moonbit Reporter

A voice of opposition is emerging in the industry against the 'Operation Chokepoint 2.0' regulation, which criticizes banks' unfair treatment of the virtual asset industry.

According to Cointelegraph on the 1st, David Schwartz, Ripple (XRP) Chief Technology Officer (CTO), criticized the government for being addicted to indirect regulation through X (Twitter), strongly criticizing Operation Chokepoint 2.0.

Operation Chokepoint 2.0 is a regulatory plan that prevents banks from providing services related to virtual assets, prevents virtual asset companies from receiving licenses from banks, and increases scrutiny on banks working with virtual asset companies.

Ripple CTO said, "Operation Chokepoint 2.0 is difficult under the rule of law," adding, "The government used unfair methods to make it difficult for virtual asset companies to operate and shut them down. Operation Chokepoint has no legal basis, infringes on freedom of expression, and infringes on livelihoods," he pointed out.

Meanwhile, Operation Chokepoint 2.0 has been criticized as a kind of conspiracy theory. However, on the 27th, Marc Andreessen, founder of a16z, criticized that more than 30 industry officials were harmed by Operation Chokepoint 2.0 in a podcast, and the controversy is expanding.

Elon Musk, CEO of Tesla, responded to X by asking, "Do you know the truth that 30 founders were driven out of banks?" and industry officials reacted sharply.

Brian Armstrong, founder of Coinbase, said, "This is what actually happened. An event occurred that was not transparent and un-American," adding, "We are currently collecting evidence of victims through the Freedom of Information Act (FOIA)."

Sam Kazemian, founder of Frax Finance (FRAX), also said, "I hid this matter out of fear, but now is the time to speak. In January 2023, I received a call from JPMorgan. At that time, JPMorgan said that major suppliers had to close the accounts of people who were virtual asset holders," he revealed.

On the other hand, Donald Trump, a candidate for the presidential election, pledged to abolish Operation Chokepoint 2.0 at the Bitcoin Conference last July.