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Operation Chokepoint 2.0 Causes Concerns for the Crypto Industry

Key Points:

John Deaton urged the incoming Trump administration to investigate “Operation ChokePoint 2.0,” an alleged effort to exclude crypto firms from the banking system.
Deaton highlighted the operation as a threat to free-market principles, innovation, and institutional integrity.

Former U.S. prosecutor and crypto advocate John Deaton called on the incoming Trump administration to investigate “Operation ChokePoint 2.0,” reportedly targeting cryptocurrency firms’ exclusion from the traditional banking system.

Operation ChokePoint 2.0 Sparks Free-Market Concerns

In a public statement addressed to former President Donald Trump, Vice President J.D. Vance, Elon Musk, and Vivek Ramaswamy, Deaton sounded the alarm on the implications of the alleged operation. He warned:

“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.”

It was Deaton who continued to refer to Operation ChokePoint 2.0 as a symptom of a more general threat to the very fundamentals of America’s free market, adding:

“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.”

The crypto-friendly lawyer said such practices undermine open competition, a signature of American capitalism. Though unconfirmed, the purported scheme has raised red flags related to regulatory overreach and its consequences for the crypto industry.

FDIC Scrutiny Intensifies Amid Leadership Resignation

Deaton is known for taking on Ripple’s legal battle with the Securities and Exchange Commission pro bono and had said he would also assist in investigating. His call to action comes following a court-issued order to allow Coinbase access to unredacted files by the FDIC as the crypto exchange tries to determine if it was involved in the alleged operation.

The controversy gained even more momentum after reports that Martin Gruenberg, the FDIC Chair associated with the plan, resigned in November.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.