Trained AI on the Operation Choke Point 2.0 research paper, here are 7 key points. Summary - In this paper, the authors discuss the potential clash between the crypto industry and government agencies over regulatory crackdowns. They argue that Congress needs to perform its oversight role and hold these agencies accountable. The paper proposes a series of questions that need to be answered and steps that Congress should take to obtain those answers. 1. Operation Choke Point 2.0 is negatively impacting the cryptocurrency industry. It argues that the operation is following the same plan as the first version to destroy a legitimate industry by defaming participants in that industry. 2. The operation violates constitutional provisions, including the Fifth Amendment's Due Process Clause. 3. The federal bank regulators are acting in an arbitrary and capricious fashion by failing to adequately explain their decisions, by failing to engage in reasoned decision-making, and by failing to treat like cases alike. 4. Congress should take action to hold government agencies accountable for their regulatory crackdowns on the cryptocurrency industry. 5. The paper proposes a series of questions that need to be answered and a series of steps that Congress should take in an effort to obtain those answers. 6a. The paper proposes that Congress should require the bank regulators to produce their communications with supervised financial institutions and state regulatory agencies regarding the denial or regulation of access to the financial system by crypto businesses and banks that serve the crypto industry. 6b. Congress should require the federal bank regulatory agencies to explain the basis for their conclusion that the safety and soundness of the financial system require the insulation of the banks from blockchain technology. 6c. Congress should make clear to the federal bank regulators, and all federal agencies, that the notice and comment rulemaking requirements of the Administrative Procedure Act are not optional. The requirements imposed by the APA are not obstacles to be evaded by the use of informal guidance documents. 6d. Congress should investigate the role of federal regulators in the decision by the New York Department of Financial Supervision’s decision to shutter Signature Bank. 6e. Congress should investigate whether bank regulators are acting to squelch private sector innovation in order to clear the field of competition for the benefit of existing federally regulated banks or for a federal cryptocurrency alternative. 7. According to the paper, federal regulators have failed to provide clear guidance to the crypto industry. They have also been imposing binding requirements on the banking industry through informal guidance documents, which evades the notice and comment rulemaking requirements of the administrative procedure act. Additionally, the regulators have been engaging in a "shadow de-banking" of the crypto industry by denying access to the financial system for crypto businesses. Full transcript can be found at hackmd.io/@dk3anon/choke…
Trained AI on the Operation Choke Point 2.0 research paper, here are 7 key points. Summary - In this paper, the authors discuss the potential clash between the crypto industry and government agencies over regulatory crackdowns. They argue that Congress needs to perform its oversight role and hold these agencies accountable. The paper proposes a series of questions that need to be answered and steps that Congress should take to obtain those answers. 1. Operation Choke Point 2.0 is negatively impacting the cryptocurrency industry. It argues that the operation is following the same plan as the first version to destroy a legitimate industry by defaming participants in that industry. 2. The operation violates constitutional provisions, including the Fifth Amendment's Due Process Clause. 3. The federal bank regulators are acting in an arbitrary and capricious fashion by failing to adequately explain their decisions, by failing to engage in reasoned decision-making, and by failing to treat like cases alike. 4. Congress should take action to hold government agencies accountable for their regulatory crackdowns on the cryptocurrency industry. 5. The paper proposes a series of questions that need to be answered and a series of steps that Congress should take in an effort to obtain those answers. 6a. The paper proposes that Congress should require the bank regulators to produce their communications with supervised financial institutions and state regulatory agencies regarding the denial or regulation of access to the financial system by crypto businesses and banks that serve the crypto industry. 6b. Congress should require the federal bank regulatory agencies to explain the basis for their conclusion that the safety and soundness of the financial system require the insulation of the banks from blockchain technology. 6c. Congress should make clear to the federal bank regulators, and all federal agencies, that the notice and comment rulemaking requirements of the Administrative Procedure Act are not optional. The requirements imposed by the APA are not obstacles to be evaded by the use of informal guidance documents. 6d. Congress should investigate the role of federal regulators in the decision by the New York Department of Financial Supervision’s decision to shutter Signature Bank. 6e. Congress should investigate whether bank regulators are acting to squelch private sector innovation in order to clear the field of competition for the benefit of existing federally regulated banks or for a federal cryptocurrency alternative. 7. According to the paper, federal regulators have failed to provide clear guidance to the crypto industry. They have also been imposing binding requirements on the banking industry through informal guidance documents, which evades the notice and comment rulemaking requirements of the administrative procedure act. Additionally, the regulators have been engaging in a "shadow de-banking" of the crypto industry by denying access to the financial system for crypto businesses. Full transcript can be found at hackmd.io/@dk3anon/choke…