Noted cryptocurrency advocate John Deaton is now calling on a federal investigation into "Operation ChokePoint 2.0," which he calls coordinated government efforts to strangle cryptocurrency services in the United States.
Deaton, an attorney leading representation of XRP holders in various lawsuits against the SEC, lashed out at the FDIC for targeting Bitcoin, Ethereum, and other blockchain services.
According to Deaton, newly unsealed documents reveal that between 2022 and 2023, the FDIC issued at least 25 orders to banks to cut or eliminate services linked to cryptocurrency transactions and tokenized products. These actions, he says, are an unfair restraint on innovation and create a dangerous precedent for government overreach into the financial sector.
Deaton has said he will spearhead the probe pro bono, touting his experience as a former prosecutor and Special Assistant to the U.S. Attorney. He expressed the need for transparency and equity, adding that such interference would corrode trust in America's free-market principles.
The crypto industry has rallied around Deaton to point out the broader implications of Operation ChokePoint 2.0. Companies like Custodia Bank have come under intense difficulty, facing limited access to banking infrastructure. Critics say this prevents legitimate businesses from growing and diminishes the US's position as a global leader in innovation. Crypto supporters, including lawmakers such as Rep. French Hill and just-named "Crypto Czar" David Sacks, promised to focus on those ills.