Operation ChokePoint, a government initiative to limit some companies’ access to banking services, is receiving renewed attention. The initiative, launched in 2013, aims to restrict the access of traditional banking services to the cryptocurrency industry. Now, a few crypto figures are taking action, including blockchain proponent, John Deaton.
In a Twitter post/X, Deaton – An XRP Supporter and Advocate – Discussed the industry’s struggle and battle against ChokePoint and suggested he would be willing to volunteer and help lead the investigation into this initiative.
In this lengthy stance, Deaton raised the challenges facing the cryptocurrency industry and warned that it directly attacks the principles of free markets and competition.
Deaton raises the alarm, and wants to lead an investigation
Initially launched by President Barack Obama’s administration in 2013, the initiative returned to the spotlight after several letters from the Federal Deposit Insurance Corporation (FDIC) indicating that the agency had requested a temporary halt to banking 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 will accept the assignment without pay. The American people deserve the truth far more than me or anyone else… https://t.co/LFdhpCixnr
– John E. Deaton (@JohnEDeaton1) January 4, 2025
The letter appears to validate a long-held belief that regulators prevent traditional banking institutions from participating in the growing industry.
Many, including crypto proponent James Deaton, have shown interest in this perceived attack on the cryptocurrency industry. Through a wide-ranging tweet on X, Deaton revealed his frustration with his intention to fight the initiative, which is tagged with “ “Choke Point 2.0.”
He also shared his desire to lead an investigation into the initiative and take on this role without salary.
Versus combat. ChokePoint 2.0 “is an honor and a privilege,” says Deaton
In the lengthy petition, he said the potential investigation into this initiative challenges the country’s capitalism and free market principles. This fight goes beyond digital assets, blockchain, and banking charters, he said. Instead, it is a campaign to hold unelected officials, who are believed to be using their power to limit access to financial systems, accountable.
Deaton believes the American people deserve transparency and accountability. It also caught the attention of incoming US President Donald Trump, his vice president, J.D. Vance, and Elon Musk, who said that this current battle is for institutional integrity.
Thanks for @iampaulgrewal And the rest of the team at Coinbase, the FDIC has now been forced to un-revise its “pause letters” to banks during 2022-2023. We know what the FDIC has been telling banks not to do (thread)
– Nick Carter (@nic__carter) January 4, 2025
Support Gains Call Crypto Lawyer
Deaton’s social media post on January 5 is slowly gaining traction. The cryptocurrency industry also welcomed his call for an investigation. In addition to his references to Trump, Vance, and Musk, Deaton implored Congress and Coinbase’s Paul Grewal to launch a formal investigation into the FDIC initiative.
I’ve summarized the new batch of pause messages here. When I add the word “suspect”, it means I’m guessing which bank or product the redactions relate to. Credit to @john_yeller To make a USDF connection. pic.twitter.com/gVWaF4rVNf
– Nick Carter (@nic__carter) January 4, 2025
Coinbase has made its revised FDIC letters public. According to a social media post, the cryptocurrency exchange obtained these files through a court order. Industry expert Nick Carter acknowledged Coinbase’s decision to share these documents publicly and joined calls for an investigation.
Featured image from Pixabay, chart from TradingView