Pro-Crypto Lawyer John Deaton Offers to Lead a Probe into Operation Chokepoint 2.0

Highlights:

• John Deaton offers to lead an investigation into Operation Chokepoint 2.0 for the Trump administration.
• Deaton warns that unchecked actions could suppress innovation and block economic opportunities.
• Industry leaders await the response from the new administration.

A former US prosecutor and crypto advocate, John Deaton, has offered to lead an investigation into Operation Chokepoint 2.0 under the upcoming Trump administration. The operation is accused of trying to block crypto businesses from accessing traditional banking services.

He highlighted his experience as a former prosecutor and Special Assistant to the U.S. Attorney. John Deaton said he would take on the task without pay. His goal is to expose government agencies’ overreach and ensure Americans know the truth. “If these actions go unchallenged, it creates a dangerous precedent,” Deaton said. He warned that regulatory bodies could quietly suppress industries they dislike, blocking innovation, competition, and economic opportunity. 

Deaton stated:

“The American people deserve the truth a hell of a lot more than I or anyone else needs another taxpayer funded paycheck.”

He pointed out that the effects of Operation Chokepoint 2.0 reach beyond Custodia Bank and other crypto firms. He called it a dangerous precedent that could undermine trust in America’s free market. John Deaton emphasized that unelected officials shouldn’t be allowed to choose winners and losers in industries they oppose. In his post, Deaton addressed President Trump, VP Vance, Elon Musk, Vivek Ramaswamy, Secretary Lutnik, and David Sacks, who will lead Trump’s AI and crypto efforts.

The plan to investigate Operation Chokepoint 2.0 was not part of Trump’s campaign promises. However, industry supporters believe this ongoing overreach must be addressed before any promised reforms can happen. The industry is waiting to see how the new administration will respond to crypto leaders. Crypto Czar David Sacks has promised to investigate Operation Chokepoint 2.0. He has support from lawmakers like Rep. French Hill.

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… https://t.co/LFdhpCixnr

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

Discovery Uncovers FDIC Efforts to Limit Crypto Services

A discovery order uncovered a large effort to limit cryptocurrency services. Coinbase obtained unredacted documents from the Federal Deposit Insurance Corporation (FDIC). The exchange claims the FDIC sent at least 25 letters to various banks in recent years. These letters demanded that the banks stop or reduce their services related to Bitcoin, Ethereum, blockchain networks, and tokenized deposits.

JUST IN: 🇺🇸 Coinbase Obtained Unredacted FDIC Documents Revealing A Coordinated Effort, From The Government Regulator, To Restrict Crypto Related ActivitiesUnder “Operation Chokepoint 2.0” , Following A Court Order! https://t.co/xEnXyek84T pic.twitter.com/ZBairsdZPh

— Good Morning Crypto (@AbsGMCrypto) January 3, 2025

After reviewing the filings, Coinbase’s chief legal officer Paul Grewal said:

“They show a coordinated effort to stop a wide variety of crypto activity — everything from basic BTC transactions to more complex offerings.” 

Industry expert Nic Carter believes Operation Chokepoint 2.0 has stifled financial innovation. This has stopped products like Bitcoin-reward debit cards and Bitcoin-backed loans from emerging. He also stated that the FDIC’s actions harmed consumers and innovation. They prevented the U.S. from advancing in financial technology.

Many citizens are hopeful about the future of the industry. However, the sector still faces big challenges. Federal Reserve Chair Jerome Powell has stated that the Fed will not invest in Bitcoin or similar initiatives.