Operation ChokePoint, a government initiative aimed at limiting certain businesses’ access to banking services, is again under scrutiny. Originally launched in 2013, its current focus appears to be on curtailing traditional banking’s involvement in the crypto space. Notably, some key figures in the crypto industry, like blockchain advocate John Deaton, are stepping up to challenge this renewed effort.
John Deaton, an advocate for XRP and a lawyer, recently took to Twitter, or X as it’s known now, to highlight the industry’s ongoing battle against ChokePoint. He boldly offered to spearhead an investigation into this initiative, emphasizing the hurdles it presents for the crypto sector and asserting that it threatens the fundamental principles of free markets and competition.
Deaton’s Challenge and Commitment to Lead the Charge
ChokePoint’s re-emergence into the public discourse comes on the heels of discovering letters from the Federal Deposit Insurance Corporation (FDIC). These documents imply a federal request to halt both banking and cryptocurrency activities. Initiated under President Barack Obama’s administration in 2013, the project is facing renewed backlash today.
“As a former prosecutor and Special Assistant United States Attorney, I’m 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 else do,” Deaton declared in a tweet dated January 4, 2025.
The content of these letters supports a suspicion that has lingered for some time: regulators might be working to keep traditional financial institutions from engaging with the burgeoning crypto industry. This move has caught the attention of many, including crypto advocate Deaton, who voiced his frustration and determination to counter ChokePoint 2.0 through a detailed Twitter post.
The Battle Against ChokePoint 2.0: A Matter of Integrity
Deaton argues that the implications of this initiative extend well beyond cryptocurrency, blockchain technologies, and bank charters. It’s about protecting the free market and ensuring that unelected officials aren’t misusing their authority to gatekeep access to financial systems. He stresses that the American people are owed transparency and accountability.
In his appeal, Deaton urged incoming US President Donald Trump, Vice President JD Vance, and Elon Musk to recognize the broader stakes of this fight, which he views as essential to maintaining institutional integrity.
As a show of solidarity, @iampaulgrewal and the Coinbase team have assisted in pressuring the FDIC to further un-redact its “pause letters” to banks from 2022-23. This transparency is crucial in understanding what the FDIC has been advising financial institutions against doing.
Building Momentum: The Crypto Community’s Support
Deaton’s call to action, particularly his social media post on January 5th, is gradually gaining support. His push for an inquiry is being well-received by many within the cryptocurrency sector. In addition, he appealed to Congress and Paul Grewal from Coinbase to initiate an official investigation into the FDIC’s motives.
Nic Carter, an industry expert, highlighted Coinbase’s important role in making the FDIC’s redacted correspondence public, a move achieved through a court order. Carter praised this transparency and echoed the calls for a thorough investigation.
As this story unfolds, it’s clear that the crypto industry, backed by voices like Deaton’s and institutions like Coinbase, is rallying against what they perceive as an unjust impediment to progress and innovation. Featured image from Pixabay, chart from TradingView.
