Ripple’s legal chief warns US regulators are subtly pushing crypto out

Ripple's (CRYPTO:XRP) legal chief, Stuart Alderoty, has exposed what he sees as a strategic effort by U.S. regulators to suppress the cryptocurrency industry.  

He believes that this initiative, dubbed "Operation Chokepoint 2.0," is a coordinated attempt to restrict banking services for crypto-related businesses.  

Alderoty outlined the historical context of the campaign, comparing it to the 2012 "Operation Chokepoint."  

That initiative reportedly pressured banks to stop servicing disfavored industries, such as gun retailers and payday lenders.  

According to Alderoty, the crypto industry has now become the main target of this strategy.  

“In 2012, regulators (FDIC, OCC, Fed) weaponized banks against disfavored industries (gun stores, payday lenders, etc.) under the original ‘Operation Chokepoint.’ Fast forward to 2021: crypto is the new target,” the Ripple CLO shared his perspective on social media.

He pointed to specific regulatory actions, including the 2021 rescission of the Fair Access to Banking Rule and subsequent directives from the OCC, FDIC, and Federal Reserve.  

These agencies issued warnings to banks about the risks of working with crypto businesses, with the aim of discouraging them from maintaining relationships with the sector.  

While the regulators claim that banks are not explicitly discouraged from serving crypto clients, Alderoty argues that the underlying message is clear: “Don’t even think about it.”  

Alderoty, who has experience as a general counsel at major financial institutions, explained how these warnings serve as a veiled deterrent.  

This, he argues, is part of a broader effort to marginalize the cryptocurrency industry under the pretext of regulatory caution. 

Industry leaders like Tyler Winklevoss of Gemini have echoed Alderoty's concerns, calling this effort a federal crime aimed at persecuting political opponents within the crypto space.

At the time of reporting, the XRP price was $2.42.