Ripple’s CTO, David Schwartz, is blasting the US government for allegedly pressuring banks to cut ties with crypto and tech founders without due process. He calls this tactic “indirect regulation” and says it’s unconstitutional.
Unconstitutional Overreach?
Schwartz took to X (formerly Twitter) to denounce the practice, calling it “Orwellian nonsense.” He argues that the government is circumventing the legal system by pressuring banks instead of pursuing legitimate legal action against individuals or businesses. He believes this violates due process rights and the First Amendment. Schwartz’s main point is that if the government wants to stop certain activities, it should pass laws, not use backdoor tactics to shut down businesses.
A Wider Crypto Crackdown?
Schwartz’s comments follow similar accusations from Coinbase CEO Brian Armstrong. Armstrong claimed that Senator Elizabeth Warren and SEC Chair Gary Gensler tried to destroy the crypto industry, possibly illegally, and that this contributed to the Democrats’ election losses. These statements come amidst reports that around 30 tech and crypto founders have been cut off from banking services.
The Bottom Line
The situation highlights growing concerns about the US government’s approach to regulating the crypto industry. Critics argue that indirect methods like pressuring banks undermine the legal system and stifle innovation. The debate continues over whether these actions are justified and whether they represent a fair and legal approach to regulation.
