Last Updated: August 2, 2023
• Cooper & Kirk PLLC released a white paper claiming that US federal regulators are illegally targeting the cryptocurrency industry with “regulatory tools and pressure tactics.”
• The report likens the recent regulatory measures to a similar initiative under the Obama administration, which aimed to target fraudulent and high-risk industries such as tobacco and payday lending.
• The law firm argues that Operation Chokepoint 2.0 deprives businesses of their constitutional rights to due process and violates the non-delegation doctrine, anti-commandeering doctrine, as well as depriving Americans of key structural constitutional protections against arbitrary governmental power.
Why Regulators Were Accused of “Illegal Overreach”
Washington, D.C. law firm Cooper & Kirk PLLC on Friday 24th of March released a white paper alleging that US federal regulators are engaging in a “clandestine financial war” against the cryptocurrency industry. The report claims that regulatory bodies such as the Federal Deposit Insurance Corporation (FDIC) and the Options Clearing Corporation (OCC) are using “regulatory tools and pressure tactics” to limit the extent to which digital assets can be integrated into the financial system.
Operation Chokepoint 2.0
Dubbed “Operation Chokepoint 2.0,” the report likens the recent regulatory measures to a similar initiative under the Obama administration, which aimed to target fraudulent and high-risk industries such as tobacco and payday lending. Cooper & Kirk’s report goes on to explain how regulators are issuing informal guidance documents that target crypto users deemed as posing a higher risk to banks.
Holding Regulators Accountable
The lawyers from prestigious firm Cooper & Kirk have issued a white paper describing how federal banking regulators including the FDIC have illegally targeted cryptocurrency users through informal guidance documents that classify them as posing higher risks for banks or other financial institutions. This deprives businesses of their constitutional rights to due process, violates non-delegation doctrine, anti-commandeering doctrine, while also depriving Americans of key structural constitutional protections against arbitrary governmental power according to Cooper & Kirk’s report..
Increased Regulatory Scrutiny
The report raises concerns over increased regulatory scrutiny that crypto industry has been subject too in recent years with Operation Chokepoint 2.0 resulting in businesses being “debanked” and having access to automated clearinghouse (ACH) network revoked by regulators like FDIC and OCC .
“Operation Chokepoint 2.0” Must Be Halted
While Cooper & Kirk claims it was instrumental in halting original Operation Chokepoint , they urge Congress now hold agencies accountable for illegal overreach by proposing questions for answers . Cardano founder Charles Hoskinson has commented on this letter in YouTube video .