{"id":33111,"date":"2024-12-01T14:36:34","date_gmt":"2024-12-01T11:36:34","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=33111"},"modified":"2024-12-01T14:36:34","modified_gmt":"2024-12-01T11:36:34","slug":"ripple-cto-government-has-become-addicted-to-indirect-regulation","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/ripple-cto-government-has-become-addicted-to-indirect-regulation\/","title":{"rendered":"Ripple CTO: &#8216;Government Has Become Addicted to Indirect Regulation&#8217;"},"content":{"rendered":"<p>Ripple\u2019s <strong>Chief Technical Officer (CTO) David Schwartz<\/strong> has joined the growing list of tech leaders speaking out against <strong>Operation Chokepoint 2.0<\/strong>, a government-led debanking operation targeting the crypto industry. Schwartz argued that the government has become &#8220;addicted to indirect regulation&#8221; and emphasized that cutting off banking services undermines the <strong>rule of law<\/strong>.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/ripple-cto-government-has-become-addicted-to-indirect-regulation\/#The_Harm_of_Debanking\" title=\"The Harm of Debanking\">The Harm of Debanking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/ripple-cto-government-has-become-addicted-to-indirect-regulation\/#Support_from_the_Tech_Sector\" title=\"Support from the Tech Sector\">Support from the Tech Sector<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_Harm_of_Debanking\"><\/span>The Harm of Debanking<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Schwartz highlighted that debanked entities either switch to alternative service providers or move their operations underground, thereby evading surveillance and sanctions enforcement. He further pointed out that these practices erode the rights to <strong>due process<\/strong>, <strong>freedom of speech<\/strong>, and protection against <strong>unlawful search and seizure<\/strong>.<\/p>\n<p>Schwartz stated:<\/p>\n<p>&#8220;Our government has become addicted to indirect regulation precisely because of these evils. It is cheaper and easier to pressure someone else to punish me than to charge me with a crime and give me due process. But the government ought not to punish people without giving them due process.&#8221;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2024-11\/01937def-f4f1-74b4-8655-0a2483cf42e4\" alt=\"ripple\" width=\"1578\" height=\"1468\" \/><\/p>\n<p>He also criticized the government for pressuring banks to cut off disfavored businesses instead of making such businesses explicitly illegal. Schwartz urged the authorities to adopt lawful and transparent processes to regulate industries.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Support_from_the_Tech_Sector\"><\/span>Support from the Tech Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Venture capitalist Mark Andreesen<\/strong> revealed that over <strong>30 tech firms<\/strong> were impacted by <strong>Operation Chokepoint 2.0<\/strong>. Many tech leaders have since taken to social media to share their experiences with debanking.<\/p>\n<p>For example, <strong>Frax Finance<\/strong> founder <strong>Sam Kazemian<\/strong> claimed that <strong>JPMorgan Chase<\/strong> debanked him in December 2022. Similarly, Coinbase co-founder and CEO <strong>Brian Armstrong<\/strong> filed a <strong>Freedom of Information Act (FOIA)<\/strong> request to obtain records about <strong>Operation Chokepoint 2.0<\/strong>, and he is currently compiling the findings.<\/p>\n<p>In September 2024, <strong>Nic Carter<\/strong>, a partner at <strong>Castle Island Ventures<\/strong>, accused the <strong>Biden administration<\/strong> of deliberately shutting down <strong>Silvergate Bank<\/strong>, a major crypto banking institution, as part of an effort to suppress the crypto industry. Carter stated, &#8220;I believe Silvergate could have survived its drawdown \u2014 and was on a path to do so.&#8221;<\/p>\n<p>Despite the regulatory hostility under the current administration, industry leaders are optimistic that the incoming <strong>Trump administration<\/strong> will reverse these policies and create a more favorable environment for the crypto sector.<\/p>\n<hr \/>\n<p><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ripple\u2019s Chief Technical Officer (CTO) David Schwartz has joined the growing list of tech leaders speaking out against Operation Chokepoint 2.0, a government-led debanking operation targeting the crypto industry. Schwartz argued that the government has become &#8220;addicted to indirect regulation&#8221; and emphasized that cutting off banking services undermines the rule of law. The Harm of<\/p>\n","protected":false},"author":28,"featured_media":33073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,10,657,2],"tags":[9824,847,6033,1218,9821,9822,9820,509,9823,3310,506],"class_list":["post-33111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-economy-news","category-en","category-news","tag-biden-administration","tag-crypto-news","tag-crypto-regulation","tag-david-schwartz","tag-debanking","tag-indirect-regulation","tag-operation-chokepoint-2-0","tag-ripple","tag-silvergate-bank","tag-trump","tag-xrp"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ripple CTO: &#039;Government Has Become Addicted to Indirect Regulation&#039; - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/ripple-cto-government-has-become-addicted-to-indirect-regulation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ripple CTO: &#039;Government Has Become Addicted to Indirect Regulation&#039; - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Ripple\u2019s Chief Technical Officer (CTO) David Schwartz has joined the growing list of tech leaders speaking out against Operation Chokepoint 2.0, a government-led debanking operation targeting the crypto industry. 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