Cryptocurrency Lawyer Offers to Investigate Operation Chokepoint 2.0

As the incoming Trump administration prepares to take office, former United States prosecutor and crypto advocate John Deaton has reached out with an offer to lead a probe into Operation Chokepoint 2.0 – an unconfirmed initiative that allegedly attempted to cut crypto companies from the traditional banking system.

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A Threat to Institutional Integrity

Deaton’s offer comes in response to allegations that regulatory bodies have been quietly suppressing entire industries they disfavor, stifling innovation, competition, and economic opportunity. In a January 4th X post addressed to incoming United States President Donald Trump, Vice President JD Vance, and Department of Government Efficiency leaders Elon Musk and Vivek Ramaswamy, Deaton expressed his concern:

"If these actions go unchallenged, it creates a dangerous precedent where regulatory bodies can quietly suppress entire industries they disfavor, stifling innovation, competition, and economic opportunity."

Deaton’s post also highlighted the erosion of institutional integrity and the unchecked power of unelected bureaucrats. He emphasized that this is not just a fight for crypto, but a broader issue affecting the fundamental principles of government:

"This isn’t just a fight for crypto, it’s a fight against the erosion of institutional integrity and the unchecked power of unelected bureaucrats."

A Personal Stake in the Outcome

Deaton, well-known for his efforts in Ripple’s legal battle with the Securities and Exchange Commission, has offered to lead the probe without salary:

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

This offer demonstrates Deaton’s commitment to uncovering the truth behind Operation Chokepoint 2.0 and ensuring that regulatory bodies are held accountable for their actions.

A Court Order and Unredacted Files

Deaton’s offer follows a court order allowing crypto exchange Coinbase to obtain unredacted files from the Federal Deposit Insurance Corporation (FDIC) to investigate their role in the alleged Operation Chokepoint 2.0 regime. Coinbase’s chief legal officer, Paul Grewal, explained that the filings reveal a coordinated effort to stop a wide variety of crypto activity:

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

The Alleged Architect and His Resignation

The alleged "architect" of Operation Chokepoint 2.0, Martin Gruenberg, resigned as the FDIC Chair in November. This development has raised questions about the motivations behind his resignation and whether it is related to the allegations surrounding Operation Chokepoint 2.0.

A Broader Context: The Death of Meta’s Stablecoin Project

The alleged initiative to pressure banks into refusing or limiting services to crypto firms has been linked to the collapse of crypto exchanges like Binance, which lost its local banking partner after Silvergate and Signature Bank both collapsed in March 2023. This raises concerns about the impact on the broader cryptocurrency ecosystem.

A Personal Agenda: Deaton’s Election Loss

Deaton’s offer comes after he lost a Massachusetts Senate seat to Democrat Senator Elizabeth Warren in the US election on November 5th. The landslide victory came before two heated senate debates where Deaton called out Warren for building an "anti-crypto army" instead of prioritizing issues impacting the lower and middle class in the state.

The Importance of Transparency

Deaton’s new endeavor highlights the need for transparency in government actions and regulations. As regulatory bodies continue to shape the cryptocurrency landscape, it is essential that they are held accountable for their decisions.

A Call to Action: What’s Next?

As Deaton prepares to lead a probe into Operation Chokepoint 2.0, several questions arise:

Will the incoming Trump administration support Deaton’s efforts?
Will regulatory bodies be held accountable for their actions?
How will this impact the broader cryptocurrency ecosystem?

Only time will tell what the outcome of Deaton’s investigation will be. However, one thing is clear: the need for transparency and accountability in government actions has never been more pressing.

What does Operation Chokepoint 2.0 mean?

Operation Chokepoint 2.0 refers to an alleged US government initiative to pressure banks into refusing or limiting services to crypto firms. The exact details of this initiative are still unconfirmed, but it is believed to be a coordinated effort to restrict access to banking services for cryptocurrency companies.

What is the significance of Deaton’s offer?

Deaton’s offer to lead a probe into Operation Chokepoint 2.0 without salary demonstrates his commitment to uncovering the truth behind this alleged initiative and ensuring that regulatory bodies are held accountable for their actions.

How does this impact the cryptocurrency ecosystem?

The allegations surrounding Operation Chokepoint 2.0 have raised concerns about the potential for regulatory bodies to quietly suppress entire industries they disfavor, stifling innovation, competition, and economic opportunity. This has significant implications for the broader cryptocurrency landscape.

What’s next for Deaton and the investigation?

As Deaton prepares to lead a probe into Operation Chokepoint 2.0, several questions arise about what the outcome will be and how it will impact the regulatory landscape. One thing is clear: this investigation has the potential to shake up the world of cryptocurrency regulations.

Sources:

John Deaton’s January 4th X post
Coinbase’s chief legal officer, Paul Grewal
The alleged architect of Operation Chokepoint 2.0, Martin Gruenberg’s resignation as FDIC Chair in November