Emily Walker
The spotlight is back on Operation ChokePoint, a government effort aimed at limiting the banking access of certain sectors, particularly in the crypto space. Introduced in 2013, the initiative seeks to hinder traditional financial institutions from engaging with the cryptocurrency industry. Recently, blockchain advocate John Deaton has begun rallying support against this initiative.
On social media, Deaton, who is a lawyer and a supporter of XRP, highlighted the significant obstacles faced by the crypto sector due to ChokePoint, asserting his readiness to volunteer for leading an investigation into the initiative.
In his extensive commentary, Deaton expressed concern that the initiative undermines fundamental free market principles.
Deaton Sounds the Alarm for an Investigation
This initiative, first rolled out during President Barack Obama’s presidency in 2013, has resurfaced recently after the Federal Deposit Insurance Corporation (FDIC) issued letters indicating a request for banks to halt dealings with cryptocurrencies.
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…
— John E Deaton (@JohnEDeaton1) January 4, 2025
The content of these letters has fueled long-held suspicions that regulators are obstructing traditional banks from entering the expanding crypto market.
Crypto advocates, including James Deaton, have expressed concern over the perceived assault on the cryptocurrency sector. In a detailed tweet on X, Deaton communicated his determination to challenge what he refers to as “ChokePoint 2.0.”
He reiterated his willingness to spearhead an investigation into this matter without financial compensation.
Deaton Calls the Fight ‘an Honor and Privilege’
In his detailed remarks, Deaton emphasized that probing this initiative is vital for upholding the nation’s capitalist values and free market operations. He believes this struggle encompasses much more than just digital currencies, extending to a broader fight for accountability among non-elected officials wielding authority to restrict access to financial services.
Furthermore, Deaton argued that the public deserves clarity and accountability regarding such initiatives. He also reached out to eminent figures like incoming President Donald Trump, Vice President JD Vance, and Elon Musk, asserting that this battle is essential for maintaining 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 what the FDIC was asking banks not to do (thread)
— nic carter (@nic__carter) January 4, 2025
Support Grows for Deaton’s Call to Action
Deaton’s recent posts are garnering attention and support across the cryptocurrency community. His appeal for an investigation has resonated particularly well, alongside his mentions of Trump, Vance, and Musk, as well as a public request to Congress and Paul Grewal from Coinbase.
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 has made the FDIC’s redacted letters available to the public, claiming that access to these files has been secured through a court order. Nic Carter, an industry expert, has praised Coinbase’s initiative to disclose these documents and has added his voice to the call for further investigation.
Featured image from Pixabay, chart from TradingView