Former Special U.S. Assistant Attorney John Deaton has expressed his willingness to lead a federal investigation into Chokepoint 2.0. He believes this initiative is part of a government effort to stifle the cryptocurrency industry. Deaton, known for his fight against government overreach, said leading the investigation would be “both an honor and a privilege.” He has volunteered for the role without compensation, continuing his resistance against what he sees as the U.S. Securities and Exchange Commission’s (SEC) overreach.
The Importance of Addressing Chokepoint 2.0
In a recent post on X, Deaton emphasized the significance of Chokepoint 2.0. He pointed out that many in the crypto industry may not fully grasp the situation’s seriousness. He highlighted the ongoing case of Custodia Bank against the U.S. Federal Reserve. Deaton called it the “most important” case, illustrating how unelected government officials can misuse their power to undermine lawful businesses. He warned that such actions could stifle innovation and disrupt legal operations within the crypto space.
Potential Consequences for Other Industries
According to Deaton, allowing these actions to continue unchecked could set a dangerous precedent. If regulators can target crypto, other industries might also become victims of regulatory overreach. Deaton cautioned that such abuse of power could expand to non-crypto businesses in the future.
New Revelations of Regulatory Suppression
Deaton’s concerns gained further weight following Coinbase’s recent revelations. The exchange claimed to have obtained unredacted Federal Deposit Insurance Corporation (FDIC) letters. These documents allegedly show regulators working together to exclude crypto entities from the banking system. Paul Grewal, Coinbase’s Chief Legal Officer, stated that the letters revealed efforts to stop various crypto activities, ranging from basic Bitcoin transactions to more complex financial services. This further supports Deaton’s concerns about regulatory efforts to isolate crypto from traditional financial institutions.
A Broader Threat to U.S. Innovation
Deaton warned that Chokepoint 2.0 poses a broader threat to U.S. innovation. He believes that if these regulatory practices are not addressed, they could harm the nation’s position as a leader in global innovation. Deaton stressed that fair access to financial infrastructure is essential for the future of the U.S. economy. He argued that regulatory enforcement should be driven by fairness, not political or ideological motives.
In conclusion, Deaton called for a thorough investigation into Chokepoint 2.0. He argued that exposing the decision-makers behind this initiative is crucial. Holding these individuals accountable will help protect innovation and ensure a fair, competitive economic landscape in the U.S.
