• Cooper & Kirk PLLC has recently released a white paper that alleges US federal regulators are engaging in a “clandestine financial war” against the crypto industry.
• The report claims 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.
• Cooper & Kirk’s report raises concerns regarding increased regulatory scrutiny of crypto businesses, arguing that Operation Chokepoint 2.0 deprives businesses of their constitutional rights to due process.
Cooper & Kirk Accuses Regulators of Overreach Against Crypto Industry
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 recent regulatory measures to an initiative under Obama administration, designed 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, violates non-delegation doctrine and anti-commandeering doctrine which deprive Americans of key structural constitutional protections against arbitrary exercise of governmental power. Furthermore, Cooper & Kirk alleges that as a result of these measures, crypto users have been „debanked“ or had access to ACH network revoked.
Cardano Founder Charles Hoskinson Responds
Cardano founder Charles Hoskinson has commented on Cooper & Kirk’s letter in a YouTube video, urging Congress to hold agencies accountable for their actions and proposing questions for obtaining answers from them.
Regulatory Scrutiny on Crypto Increasing
The report raises concerns over increasing regulatory scrutiny that crypto industry has been subject to in recent years with regards to KYC/AML policies, taxation regulations etc., making it more difficult for businesses and individuals in this field operate successfully within existing frameworks set by banking institutions..
Congress Urged To Hold Regulators Accountable
Cooper & Kirk urges Congress take action regarding this matter by holding responsible agencies accountable for their acts via steps proposed in their letter including issuing informal guidance documents targeting crypto users deemed higher risk banks etc..