Attorney John Deaton is calling for a federal investigation into Operation ChokePoint 2.0, which has been targeting cryptocurrency services across the United States. Deaton, known for his advocacy for XRP holders and his previous confrontation with the SEC, is urging for transparency and fair regulations in the crypto industry to promote growth.
Deaton’s petition for the investigation comes in response to a discovery order that revealed the FDIC’s efforts to restrict cryptocurrency-related services. Coinbase, a prominent cryptocurrency exchange, obtained unredacted documents from the FDIC showing that at least 25 banks were pressured to limit or cease their services related to Bitcoin, Ethereum, blockchain settlement networks, and tokenized deposit products.
Industry experts, including Nic Carter, have criticized these actions, stating that they stifle financial innovation and hinder the development of products like Bitcoin-reward debit cards and Bitcoin-collateralized loans. Deaton shares these concerns, warning that Operation ChokePoint 2.0 not only threatens the cryptocurrency market but also undermines the free market system in America.
Calls for accountability and crypto-friendly regulations have been met with support from the crypto industry. Coinbase’s Chief Legal Officer, Paul Grewal, has urged Congress to hold hearings on the FDIC’s actions, while new regulatory appointments, such as “Crypto Czar” David Sacks and Rep. French Hill, are promising reforms for fair and balanced crypto regulations.
Despite optimism for the industry’s future prospects, challenges remain, including the Federal Reserve’s reluctance to invest in Bitcoin and the need for regulatory clarity to ensure fair treatment of digital assets. Deaton emphasizes the importance of accountability in investing and calls for a balanced approach that promotes innovation while protecting investors.
As the industry awaits responses from the new administration, Deaton’s efforts highlight the urgency of addressing Operation ChokePoint 2.0 to maintain America’s leadership in the financial sphere. By promoting transparency and fairness, the crypto industry aims to foster growth and innovation in digital assets, driving towards a more equitable and prosperous future for all stakeholders.