Law Firm’s White Paper Claims US Bank Regulators Are Waging a ‘Clandestine Financial War’ Against Crypto Businesses – Bitcoin News

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According to a recent white paper published by four members of the law firm Cooper & Kirk, PLLC, US bank regulators are trying to “remove crypto businesses from the financial system.” The article, titled “Operation Chokepoint 2.0,” claims that after laying the groundwork by labeling legitimate businesses as “reputationally risky,” federal bank regulators, with the help of state officials, “turned to the task of cleaning up their accounts of each of the banks subject to their supervision.”

Constitutional Issues Raised by Operation Chokepoint 2.0: Stripping Businesses of Due Process and Key Structural Constitutional Protections

Five days ago, Bitcoin.com News published an article that examines recent discussions in the crypto community about “Operation Chokepoint” and why crypto proponents believe that the US government aims to eliminate access to cryptocurrencies. On Monday the Washington law firm Cooper & Kirk published a white paper on the subject, noting that US banking regulators appear to be waging a “covert financial war” against the crypto industry.

The authors of the paper, David Thompson, John Ohlendorf, Harold Reeves, and Joseph Masterman, begin by explaining “Operation Chokepoint 1.0” before delving into “Operation Chokepoint 2.0.” The first iteration of the alleged operation began by labeling legal and legitimate crypto entities as “reputationally risky”.

The second stage of the operation tries to stifle the crypto industry by limiting access to on and off slopes. According to the Cooper & Kirk article, “in the back rooms of banks around the country, bank examiners made it clear that those financial institutions that continued to serve customers that federal regulators had labeled ‘reputationally risky’ would suffer the consequences.”

The law firm explains that one of the first actions taken was when the Biden administration’s Office of the Comptroller of the Currency (OCC) rescinded a rule designed to “ensure fair access to banking services for several industries—including debt collection—previously cut off during the controversial Obama-era program Operation Chokepoint.”

The Cooper & Kirk authors further detail that the Federal Deposit Insurance Corporation (FDIC) became involved on April 7, 2022. At that time, the FDIC issued a letter to all institutions under its supervision, requesting information about their interest in serving the crypt industry and banks that are already engaged with businesses of this nature. Cooper & Kirk’s white paper claims that Operation Chokepoint 2.0 is illegal and unconstitutional.

“Operation Choke Point 2.0 deprives businesses of their constitutional rights to due process in violation of the Fifth Amendment,” the paper’s authors explain. “Operation Choke Point 2.0 violates both the non-delegation doctrine and the anti-commandeering doctrine, depriving Americans of key structural constitutional protections against the arbitrary exercise of government power.”

The white paper follows the failures of three major US banks that had ties to the crypto industry, as well as comments from Signature Bank board member and former politician Barney Frank, who suggested that Signature’s seizure was meant to be “anti-crypto ” message. .

Tags in this story

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What do you think of the allegations made in the Cooper & Kirk White Paper? Do you believe that Operation Chokepoint 2.0 is unconstitutional, and if so, what actions should be taken to protect the rights of crypto businesses? Share your thoughts in the comments section below.

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Jamie Redman

Jamie Redman is the News Leader at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols coming out today.




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