Crypto's Banking Access Shrinks United Texas Bank Latest Casualty

The US Fed issues a cease and desist order against United Texas Bank.
David Schwartz slams it as an indirect attack on the crypto sector.
The community calls the government’s approach a “Chokepoint 2.0.”

The U.S. Federal Reserve has ordered United Texas Bank to halt operations, citing concerns about its risk management and crypto dealings. This move has sparked a debate about the government’s approach to regulating the crypto industry, with Ripple CTO David Schwartz criticizing what he calls “indirect regulation.”

The Fed’s order highlights specific deficiencies in the bank’s handling of virtual currency customers and anti-money laundering compliance. Schwartz argues that if the government has issues with crypto companies, it should address them directly rather than targeting their banking partners.

Indirect regulation is an end-run around due process and courts need to put a stop to it. If the government wants to punish virtual currency companies, let it make a case against them. But when the government punishes your business partners for doing business with you, despite no… https://t.co/36wBqexJR0

— David "JoelKatz" Schwartz (@JoelKatz) September 6…

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