Crypto Lawyer, XRP Advocate Pushes For ChokePoint 2.0 Investigation

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The government’s initiative known as Operation ChokePoint, which was started in 2013 with the goal of limiting certain businesses’ ability to use traditional banking services, particularly those linked to cryptocurrencies, is once again attracting attention. This move aims to restrict banks from dealing with the crypto industry. Notably, some key figures in the crypto world, such as blockchain advocate John Deaton, are now taking steps to address this issue.

As a research analyst, I’ve recently come across a discussion on Twitter or another platform by Deaton, who is both an advocate for XRP and a legal professional. In this post, Deaton expressed concerns about the ongoing industry battle against ChokePoint, and he has shown his readiness to contribute and potentially take the lead in investigating this matter.

From a longer perspective, Deaton highlighted the hurdles facing the cryptocurrency sector and cautioned that it potentially undermines the foundations of free market economics and fair competition.

Deaton Raises Alarm, Willing To Lead An Investigation

The program, originally introduced during the tenure of President Barack Obama in 2013, has once again become a topic of discussion due to correspondence from the Federal Deposit Insurance Corporation (FDIC), which seems to have asked for a halt in banking and cryptocurrency transactions.

In my capacity as a past prosecutor and Special Assistant U.S. Attorney, I am deeply committed to offering my services for the management of a federal investigation into ChokePoint 2.0. I would take on this responsibility without any compensation. The truth is something that the American public deserves significantly more than any individual, including myself.

— John E Deaton (@JohnEDeaton1) January 4, 2025

It appears the content of the letter supports the notion that for some time, regulators have been hindering conventional banks from engaging in the expanding sector.

Various individuals, including crypto advocate James Deaton, have shown curiosity about the recent perceived attack on the cryptocurrency sector. In a detailed series of tweets on platform X, Deaton expressed his anger and desire to combat this movement, which is being called “Chokepoint 2.0.”

Additionally, he mentioned his readiness to spearhead an inquiry concerning the project and assume the position without receiving a wage.

Fight Vs. ChokePoint 2.0 An ‘Honor and Privilege’, Says Deaton

In his extensive plea, he expressed concern that an impending probe into this venture could threaten the core capitalist and free-market values of our nation. He contended that this dispute transcends digital currencies, blockchain technology, and banking licenses. Rather, it’s a crusade aimed at ensuring that unelected authorities are held responsible for any perceived misuse of power, as he believes they are trying to restrict access to financial systems.

Deaton asserts that the American people are entitled to openness and responsibility. Furthermore, he drew the focus of the incoming U.S. President Donald Trump, Vice President JD Vance, and Elon Musk, expressing that the ongoing battle revolves around maintaining the integrity of our institutions.

Thanks to Paul Grewal and his team at Coinbase, the Federal Deposit Insurance Corporation (FDIC) has been pushed to reveal more details about the “pause letters” they sent to banks in 2022-23. We now have a clearer understanding of what actions the FDIC was trying to discourage banks from taking (thread).

— nic carter (@nic__carter) January 4, 2025

Crypto Lawyer’s Call Gains Support

As a crypto investor, I’ve been closely following the recent social media post by Deaton on January 5th. It seems his call for an investigation within our industry is gaining momentum. Notably, he’s mentioned names like Trump, Vance, and Musk, but what really caught my attention was his appeal to Congress and Paul Grewal of Coinbase to launch an official inquiry into the FDIC’s initiative. I believe this could be a significant turning point for our community, and I eagerly await updates on this matter.

I have compiled the latest set of redacted letters and made some educated assumptions about the banks or products involved in the redactions. John Iller was instrumental in linking this with USDF.

— nic carter (@nic__carter) January 4, 2025

In response to a social media post, it was revealed that Coinbase disclosed previously redacted letters from the FDIC. The crypto exchange is said to have obtained these files through a court order. Notable industry expert Nic Carter commended Coinbase’s move to make these documents public and echoed calls for an investigation.

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2025-01-05 17:12