The FDIC wanted to send shockwaves through banks, according to Ripple's top lawyer.

Stuart Aldrote, Chief Legal Officer at Ripple, said: opinion The Federal Deposit Insurance Corporation (FDIC) tried to send "shock waves" through various banks with its intimidating messages.

“As a former general manager of the bank, these letters send one message: close everything related to cryptocurrencies as soon as possible - not just the products and services mentioned,” he said on social media.

This comes after cryptocurrency trading giant Coinbase was able to obtain a court order in order to obtain many of the unredacted letters that were sent to dozens of banks by the Federal Deposit Insurance Corporation (FDIC).

according to Paul Grewalchief legal officer at Coinbase, said there was a “coordinated effort” to put an end to a wide range of cryptocurrency activity, including mundane bitcoin transactions.

card

The recently published messages supposedly support the cryptocurrency industry's long-standing claims regarding the so-called “Operation Choke Point 2.0.”

The original “Operation Chokepoint,” exposed by the Wall Street Journal in 2013, was carried out by the Federal Deposit Insurance Corporation (FDIC) by issuing informal suggestions to banks to clamp down on various high-risk activities that ranged from fireworks sales And payday loans. The initiative has drawn widespread criticism for violating due process for specifically targeting unfavorable industries.

Cryptocurrency advocates have claimed that a similar playbook is being used against their industry.

Earlier, Alderotti spoke in great detail about the supposed “origin story” of this anti-crypto initiative, arguing that cryptocurrencies became the new target in 2021 when the Office of the Comptroller of the Currency (OCC) began requiring pre-approval for banks. Cryptography activities. The FDIC then followed suit in 2022.

Grewal called on Congress to investigate this alleged crackdown. "The new Congress should begin hearings on all of this without delay," he said.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *