Operation ChokePoint, a government initiative to cut back certain businesses’ access to banking services, is getting renewed attention. The initiative, launched in 2013, goals to limit traditional banking’s access to the crypto industry. Now, just a few crypto personalities are taking motion, 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.
Within 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 within the highlight 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’m very serious about volunteering to assist lead a federal investigation into ChokePoint 2.0. I’d accept the duty without salary. The American people deserve the reality a hell of loads greater 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 stopping traditional banking institutions from participating within the growing industry.
Many have taken interest, including crypto proponent James Deaton, by this attack perceived on the crypto industry. Through an intensive tweet post on X, Deaton revealed his frustration along with his intent to fight this initiative, branded as “Chokepoint 2.0.”
He also shared that he’s willing to steer an investigation into the initiative and tackle the role without salary.
Fight Vs. ChokePoint 2.0 An ‘Honor and Privilege’, Says Deaton
Within the lengthy petition, he shared that a possible 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. As an alternative, it’s a campaign to carry 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 eye of incoming US President Donald Trump, his Vice President, JD Vance, and Elon Musk, sharing that this current fight is for institutional integrity.
Because of @iampaulgrewal and the remaining of the team at Coinbase, the FDIC has now been compelled to further un-redact their “pause letters” to banks during 2022-23. We all know know what the FDIC was asking banks to not do (thread)
— nic carter (@nic__carter) January 4, 2025
Crypto Lawyer’s Call Gains Support
Deaton’s social media post on January fifth is slowly gaining traction. The cryptocurrency industry has also welcomed his call for an inquiry. Along with his mentions of Trump, Vance, and Musk, Deaton appealed to Congress and Paul Grewal of Coinbase to begin an official inquiry into FDIC’s initiative.
I’ve summarized the brand new batch of pause letters here. After 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. In response 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