In a recent social media thread, David Schwartz, the chief technology officer of Ripple Labs, expressed concerns about the alleged unconstitutional unbanking of many crypto and tech founders by the government. Schwartz accused the government of pressuring banks to cancel accounts of individuals and businesses without any evidence of criminal activity, labeling this practice as “Orwellian nonsense” and calling for its complete eradication.
Schwartz emphasized that this form of “indirect regulation” bypasses due process and infringes on the First Amendment rights of those affected. He argued that it is easier for the government to pressure financial institutions to cut off certain businesses rather than going through the proper legislative process to prohibit them. Schwartz urged for an end to all forms of indirect regulation and emphasized the importance of upholding due process and political accountability.
These concerns come amidst statements made by Coinbase CEO Brian Armstrong, who accused Senator Elizabeth Warren and SEC Chair Gary Gensler of attempting to dismantle the crypto industry unlawfully. Armstrong suggested that their actions may have contributed to the Democrats’ electoral losses and called for the party to distance itself from Warren if they wish to rebuild support.
Rumors have circulated that the US government has severed banking services for 30 tech and crypto founders, further fueling concerns about government overreach and lack of transparency in its regulatory actions. The crypto industry continues to face challenges from regulators, with calls for greater clarity and fairness in the treatment of digital assets.
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