Operation ChokePoint, a government initiative to reduce certain businesses’ access to banking services, is getting renewed attention. The initiative, launched in 2013, aims to restrict traditional banking’s access to the crypto industry. Now, a few crypto personalities are taking action, including blockchain advocate, John Deaton. In a Twitter/X post, Deaton – an XRP proponent and lawyer – discussed the industry’s struggle and fight against ChokePoint and suggested that he’s willing to volunteer and help lead an investigation into this initiative. In the lengthy position, Deaton raised the challenges for the crypto industry and warned that it directly attacks the principles of free markets and competition. Deaton Raises Alarm, Willing To Lead An Investigation Initially launched by President Barack Obama’s administration in 2013, the initiative is back in the spotlight after several letters sourced from the Federal Deposit Insurance Corporation (FDIC) indicate that the agency requested to pause bank and cryptocurrency activities. As a former prosecutor and Special Assistant United States Attorney I am very serious about volunteering to help lead a federal investigation into ChokePoint 2.0. I would accept the task without salary. The American people deserve the truth a hell of a lot more than I or anyone… https://t.co/LFdhpCixnr — John E Deaton (@JohnEDeaton1) January 4, 2025 The letters’ message seems to validate a long-running belief that regulators are preventing traditional banking institutions from participating in the growing industry. Many have taken interest, including crypto proponent James Deaton, by this attack perceived on the crypto industry. Through an extensive tweet post on X, Deaton revealed his frustration with his intent to fight this initiative, branded as “Chokepoint 2.0.” He also shared that he’s willing to lead an investigation into the initiative and take on the role without salary. Fight Vs. ChokePoint 2.0 An ‘Honor and Privilege’, Says Deaton In the lengthy petition, he shared that a potential investigation into this initiative challenges the country’s capitalism and free market principles. He argued that this fight goes beyond digital assets, blockchain, and banking charters. Instead, it’s a campaign to hold unelected officials accountable, who he thinks are using their power to limit access to the financial systems. Deaton believes the American public deserves transparency and accountability. He also called the attention of incoming US President Donald Trump, his Vice President, JD Vance, and Elon Musk, sharing that this current fight is for institutional integrity. Thanks to @iampaulgrewal and the rest of the team at Coinbase, the FDIC has now been compelled to further un-redact their “pause letters” to banks during 2022-23. We know know what the FDIC was asking banks not to do (thread) — nic carter (@nic__carter) January 4, 2025 Crypto Lawyer’s Call Gains Support Deaton’s social media post on January 5th is slowly gaining traction. The cryptocurrency industry has also welcomed his call for an inquiry. In addition to his mentions of Trump, Vance, and Musk, Deaton appealed to Congress and Paul Grewal of Coinbase to start an official inquiry into FDIC’s initiative. I’ve summarized the new batch of pause letters here. When I add ‘suspected’ that’s me guessing what bank or product the redactions pertain to. Credit to @john_iller for making the USDF connection. pic.twitter.com/gVWaF4rVNf — nic carter (@nic__carter) January 4, 2025 Coinbase made the FDIC’s redacted letters public. According to one social media post, the crypto exchange obtained these files through a court order. Industry expert Nic Carter acknowledged Coinbase’s decision to share these documents publicly and joined calls for an investigation. Featured image from Pixabay, chart from TradingView
