Cooper & Kirk, a law firm based in Washington D.C., has recently released a white paper that presents evidence indicating the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC) have been covertly waging a financial war against the cryptocurrency industry. The report informs that the aforementioned regulators are utilizing the same regulatory tools and pressure tactics that were employed in Operation Choke Point.
During the Obama administration’s operation, regulatory pressure and perceived threats were applied to sever payday lenders, gun and tobacco dealers, and other politically unfavorable businesses from the modern financial system. Similarly, the banking agencies have resorted to issuing informal guidance documents labeling cryptocurrency customers as posing a heightened risk to the banking industry.
As a result, several cryptocurrency businesses have found themselves suddenly debanked and deprived of access to the ACH network without any explanation. Recently, the federal regulators closed down a bank known to have served the crypto industry and preferred to shut down the bank’s digital asset business, resulting in a cost of billions of dollars.