A law firm has published information claiming bank regulators are working with government agencies to purge crypto businesses out of the financial sector
A recent white paper published by law firm Cooper & Kirk, PLLC, claims that U.S. bank regulators are attempting to push crypto businesses out of the financial system through a strategy dubbed “Operation Chokepoint 2.0.”
The paper alleges that federal bank regulators, with the help of state officials, are targeting the crypto industry by labeling lawful businesses as “reputationally risky” and then purging their accounts from the banks they supervise.
Cooper & Kirk argues that this operation is unconstitutional and violates businesses’ rights to due process, as well as key structural constitutional protections against arbitrary exercise of governmental power.
The law firm cites the rescission of a rule by the Office of the Comptroller of the Currency and the involvement of the Federal Deposit Insurance Corporation as evidence of the operation’s illegality.
The paper follows the failures of three major U.S. banks that had connections with the crypto industry, and comments from a former politician who suggested that one bank’s seizure was meant to send an “anti-crypto” message.