Regulatory pressure ignites industry concerns
The ‘Operation ChokePoint 2.0’ that has stirred the U.S. crypto community has recently sparked renewed debate due to the release of FDIC documents by the court. John Deaton, a well-known lawyer representing the $XRP community, publicly declared on social media X yesterday (1/5) his willingness to lead a federal investigation into whether this action is, as rumored, a ‘non-public’ suppression tactic by government agencies against cryptocurrency operators. Deaton stated that if ChokePoint 2.0 continues unchecked, it would pose a significant threat to overall economic freedom; he specifically named the incoming President Trump and relevant officials, urging American society to ‘know the truth.’
So-called Operation ChokePoint 2.0 is said to be a ‘collaborative’ effort by certain U.S. financial and regulatory agencies to close banking services to specific crypto projects, including exchanges, DeFi platforms, and blockchain startups, making it difficult for them to access legitimate banking channels.
The Silvergate and Signature Bank, which collapsed earlier this year, are also seen by some market observers as victims of this ‘invisible blockage’. Deaton emphasized that behind these seemingly isolated incidents, there may be an invisible policy line at work, attempting to eliminate the status of cryptocurrencies in the mainstream financial system and stifling the innovation ecosystem.
Source: X John Deaton expressed his willingness to lead a federal investigation into whether this action is, as rumored, a ‘non-public’ suppression tactic employed by government agencies against cryptocurrency operators.
Deaton takes on cases for free, highlighting the industry crisis
In fact, documents obtained publicly through Coinbase from the FDIC show that the regulatory agency and certain institutions have attempted to explicitly block banks from supporting services for cryptocurrencies; this includes lending and trading permissions related to Bitcoin transactions and associated derivatives. Deaton also pointed out that these actions not only affect players like Custodia Bank and Binance but could also hinder America's innovative momentum.
‘We cannot allow unelected officials to quietly decide the fate of an emerging industry.’ He stated that this is contrary to the values of the American free market.
Deaton stated that he has experience as a prosecutor and U.S. federal assistant prosecutor, which qualifies him to investigate this matter. He further called on the incoming Trump administration not to let this overreaching regulatory hand destroy America's leading advantage in the digital asset industry. Reports suggest that within the new government, crypto officials like David Sacks and Congressman French Hill are seen as more crypto-friendly, and Deaton hopes they will take this issue seriously. Even though the Federal Reserve maintains a wait-and-see attitude towards assets like Bitcoin, the entire industry believes that only through careful investigation and public disclosure of the truth can we avoid overly tightening regulatory policies that would lead the entire industry to migrate overseas.
The industry calls for the truth; the market needs caution
Faced with this regulatory ‘strangulation’, many crypto leaders have supported Deaton's call for an investigation. Coinbase's chief legal officer Paul Grewal has also repeatedly urged Congress to hold hearings, demanding explanations from agencies like the FDIC, Fed, and OCC regarding their measures against the crypto industry. Industry participants are worried that if ChokePoint 2.0 is indeed confirmed, it will impact digital asset companies developing in the U.S. and cause America to lose its leading position in the blockchain financial industry.
For the entire market, Deaton's call for a government investigation into ChokePoint 2.0 is undoubtedly a crucial move. After all, cryptocurrencies have become a focal point for global funds and technology, and to maintain the competitiveness of the U.S. financial market, it cannot solely rely on obscure means to obstruct it. Ultimately, whether a formal investigation can be promoted as Deaton wishes now depends on the attitude of the new government and Congress. Regardless of the outcome, Deaton has declared his intent to speak out for the U.S. free market and blockchain industry, drawing more attention to whether the crypto industry can welcome a fairer policy environment in the U.S.
Further Reading
Regulatory storm sweeps the fintech industry! U.S. regulatory actions escalate, about to spill over into the crypto space?
‘Is the U.S. Suppressing the Crypto Market? The Chokepoint Controversy Continues, Lawyer: The Public Needs to Know the Truth’ This article was first published in ‘Crypto City’
