John Deaton’s Proposal
John Deaton, a prominent figure in cryptocurrency law, has stepped forward with a bold proposal to lead an inquiry into the contentious Initiative dubbed Operation Chokepoint 2.0.
This initiative, which remains unverified, is alleged to have aimed at pushing cryptocurrency companies out of traditional banking systems.
Deaton voiced his deep concerns about the implications of regulatory measures that could target crypto firms unchecked.
He warned that if these actions go unchallenged, it could set a dangerous precedent.
Regulatory bodies might start to dismantle entire industries they deem unacceptable, ultimately stifling innovation, competition, and economic growth.
On January 4, he took to X to issue a clarion call to leading political figures, including former presidential hopeful Donald Trump, Vice President JD Vance, and public reform advocates like Elon Musk and Vivek Ramaswamy.
The Urgency of Oversight
He emphasized that the battle isn’t solely about cryptocurrency; at its core, it’s about protecting institutional integrity and ensuring that unelected officials are held accountable for wielding unchecked power.
Deaton underscored the urgent need for oversight of regulatory actions, stressing that such institutions must be answerable for their decisions.
Known for his significant role in the legal conflicts involving Ripple and the SEC, Deaton mentioned that he is ready to conduct this investigation on a pro bono basis.
This commitment highlights his priority on transparency, overshadowing personal gain.
His proposal follows a recent court ruling, which allows the cryptocurrency exchange Coinbase to access unredacted documents from the Federal Deposit Insurance Corporation (FDIC)—documents that may reveal crucial insights into the alleged Operation Chokepoint 2.0.
Repercussions for the Crypto Industry
According to Paul Grewal, Coinbase’s chief legal officer, the obtained documents indicate a coordinated effort to limit the operations of various crypto ventures.
The person linked to Operation Chokepoint 2.0, Martin Gruenberg, resigned from his position as FDIC Chair in November.
Rumors suggest that Operation Chokepoint 2.0 pressured banking institutions to curtail services to crypto companies.
This initiative has had notable repercussions for exchanges like Binance, especially following the collapses of Silvergate and Signature Bank in March 2023.
Deaton’s call to action comes after his electoral defeat in Massachusetts against Democrat Elizabeth Warren, a politician he accuses of forming an “anti-crypto coalition.”
Source: Cointelegraph
