• Cooper & Kirk Law Firm has accused US federal regulators of “illegal overreach” against the crypto industry.
• The firm has urged Congress to hold agencies accountable and proposed questions to obtain answers.
• Regulators are allegedly using “regulatory tools and pressure tactics” to limit digital asset integration into the financial system.
Regulatory Overreach Against Crypto Industry
Washington, D.C.-based law firm Cooper & Kirk PLLC on Friday 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
The report dubs this initiative as Operation Chokepoint 2.0—a similar initiative under former President Obama’s administration, which aimed at targeting 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.
Accountability for Regulatory Bodies
The law firm argues that Operation Chokepoint 2.0 deprives businesses of their constitutional rights to due process, violates the non-delegation doctrine, and anti-commandeering doctrine—which deprive Americans of key structural constitutional protections against arbitrary governmental power according to their report. Cooper & Kirk alleges that these measures have resulted in businesses in the industry being „debanked“ or having access to automated clearinghouse (ACH) networks revoked without due process or proper justification from regulatory bodies themselves .
Response from Charles Hoskinson
Cardano founder Charles Hoskinson commented on this letter in a YouTube video expressing his thoughts about it being an important step forward for addressing government overreach with regards to crypto regulation in America.
With this white paper, Cooper & Kirk seeks accountability from US federal banking regulators regarding their operations towards cryptocurrency businesses while calling upon Congress members for oversight and action on behalf of American citizens who rely on cryptocurrencies for various activities including trading, investment, payments etc