Attorney John Deaton is making headlines once again, this time urging a federal probe into Operation ChokePoint 2.0 and exposing the FDIC’s actions to limit cryptocurrency services, specifically targeting Bitcoin and Ethereum transactions. The crypto industry is rallying behind Deaton, citing stifled innovation and unfair treatment, while emphasizing the need for transparency and fair regulations to foster U.S. crypto growth.
John Deaton, known for his advocacy on behalf of XRP holders and his legal battles with the SEC, recently presented a petition calling for a federal investigation into Operation ChokePoint 2.0. He is offering to conduct the probe at no cost, highlighting the importance of increased scrutiny and transparency in light of the government’s growing involvement in the financial sector.
A recent discovery order uncovered a concerted effort to restrict cryptocurrency-related services, with Coinbase successfully obtaining unredacted documents from the FDIC. These documents revealed that the FDIC had issued at least 25 letters to various banks between 2022 and 2023, instructing them to either cease or scale back their services related to Bitcoin and Ethereum transactions, blockchain settlement networks, and tokenized deposit products.
Industry expert Nic Carter has condemned these measures, noting that they have hindered financial innovation and prevented the development of products like Bitcoin-reward debit cards and Bitcoin-collateralized loans. Deaton echoed these sentiments, warning that Operation ChokePoint 2.0 poses a significant threat not just to the cryptocurrency industry, but to the free market system in America as a whole.
Calls for accountability and crypto-friendly regulations have been met with support from the crypto community, with Coinbase’s Chief Legal Officer, Paul Grewal, urging Congress to hold hearings on the FDIC’s actions. The appointment of a new “Crypto Czar,” David Sacks, and the endorsement of fair and balanced crypto regulations by Rep. French Hill have also raised hopes for a more favorable regulatory environment under the incoming administration.
Despite these positive developments, challenges remain, as evidenced by Federal Reserve Chair Jerome Powell’s declaration that the Fed has no plans to invest in Bitcoin or similar assets. Critics argue that regulatory clarity and fair treatment of digital assets are essential to prevent further barriers to innovation.
In his efforts to address the issues surrounding Operation ChokePoint 2.0, Deaton has emerged as a leading voice advocating for a fair and transparent system that promotes growth and innovation in the digital asset space. By analyzing the FDIC documents and industry responses, it is evident that the United States must take decisive action to maintain its position as a global leader in the financial sector.
As stakeholders eagerly await the response from the new administration, the momentum generated by Deaton’s advocacy serves as a beacon of hope for a future where innovation and investor protection can coexist harmoniously in the realm of digital assets.