Cooper & Kirk accuses US banking regulators of weaponization
Cooper & Kirk have urged lawmakers to look into allegations of unfair and illegal regulation of the cryptocurrency sector.
Cooper & Kirk has published a paper titled “Operation Choke Point 2.0: The Federal Bank Regulators Come For Crypto” in which the Washington, D.C.-based law firm investigates the unlawful, unconstitutional, and inconsistent “backroom war on crypto” conducted by U.S. regulatory authorities.
A February tweet by Nic Carter, a partner at Castle Island Ventures, alerted the community to a coordinated attack on the cryptocurrency industry.
It is a well-coordinated effort to marginalize the industry and cut off its access to the banking system, and it is succeeding.
Carter’s message was received with ambivalence at the time. Since then, however, several regulatory enforcement actions have occurred, including Coinbase receiving an SEC Wells Notice and the CFTC prosecuting Binance for commodities violations.
Former Coinbase CTO Balaji Srinivasan stated that Cooper & Kirk’s paper proves that Carter was correct the entire time. However, he believes the attack’s intended effects will be prevented.
“This concerted attack on Bitcoin is hard to ignore any longer. However, liberty will fight back at the national and state levels.”
Operation Choke Point first became known to the public in August 2013. It referenced a program that used the banking system to implement political views without following the proper procedures.
Ammunition, coin dealers, and home-based charities were among the “undesirable” industries targeted by the government via their banking providers.
Cooper and Kirk asserted that history is replicating itself, with the crypto industry again deemed undesirable.
The legal company settled its case against the FDIC, the Fed, and the OCC in May 2019 for their initial Operation Choke Point roles.