Cooper & Kirk said, “Operation Chokepoint 2.0: Federal Bank Regulators Come For Crypto,Based in Washington DC a law office delves into the illegal, unconstitutional and arbitrary “covert war on cryptocurrencies” led by US regulators.
crypto under fire
A coordinated attack on the cryptocurrency industry was first reported to the community in a February tweet by Nic Carter, a partner at Castle Island Ventures.
“Undervaluing the industry and cutting off connections to the banking system is a well-coordinated effort and it works.“
At the time, Carter’s message had a degree of contradiction. However, there have been several regulatory enforcement actions since then, with Coinbase receiving an SEC Wells notice and the CFTC recently suing Binance for commodities violations.
Former Coinbase CTO Balaji Srinivasan He said Cooper and Kirk’s thesis was strong evidence that Carter was right all along.
“It is hard to deny that there is a coordinated attack on Bitcoin. But freedom is being pushed back at the national and state level.“
Operation Chokepoint became known to the public August 2013It referred to programs using the banking system to carry out political views without proper due process.
Authorities targeted various “undesired” industries through banking providers such as ammunition, coin dealers, and home-based charities.
Cooper & Kirk said history is repeating itself.
History repeats itself with Operation Choke Point 2.0
Summarizing the situation, Cooper & Kirk said that banking regulators are conducting a coordinated campaign to separate cryptocurrencies from the financial system.
It takes the form of an informal, top-down guidance document aimed at cryptocurrency-related entities, including businesses, customers, and cryptocurrency employees and owners.
“Business in the cryptocurrency market is losing Access to your bank account or ACH network suddenly and without explanation their bankers. “
Cooper & Kirk called these actions abuse of power and weaponization of the banking system. Moreover, such actions violate constitutional rights and violate due process. Specifically, it refers to the underwriting bank foreclosure that occurred on March 12th.
The undersigned bank was closed by the New York State Department of Financial Services (NYDFS) to prevent the spread of contagion. Board member Bernie Frank said the bank was well capitalized and the seizure was about sending a “strong anti-cryptographic message.”
Law firms have asked Congress to intervene and demand clarification from these regulators. They recommended six steps to achieve this. They are:
- Regulators indicating communication regarding denial or regulation of bank access to crypto entities.
- Explain why affiliates are decoupling cryptographic entities from the banking system.
- To regulators and federal agencies, Administrative Procedure Law — This requires that the proposed rulemaking be subject to due process, such as public comment, and is not an option.
- Investigate closures of undersigned banks — including FDIC mandates to exclude the firm’s digital asset business from the bidding process.
- Investigate whether regulators are intentionally stifling “private sector innovation”.