John Deaton Set to Head Investigation into Alleged Cryptocurrency Enforcement Initiative ‘Operation Chokepoint 2.0’ from Trump Era

Prominent cryptocurrency advocate and former U.S. prosecutor John Deaton has suggested initiating an investigation by the Trump administration into the purported “Operation Chokepoint 2.0,” an alleged effort aimed at disconnecting cryptocurrency firms from the traditional banking system.

Deaton presented his proposal in a January 4 post on X, addressing President-elect Donald Trump, Vice President JD Vance, and other members of the incoming administration.

“If these actions go unchallenged, it sets a dangerous precedent where regulatory bodies can quietly suppress entire industries they disapprove of, hindering innovation, competition, and economic opportunity,” Deaton stated.

Deaton Views Operation Chokepoint 2.0 as Beyond a Crypto Issue

He characterized the initiative as more than just a cryptocurrency issue, describing it as a struggle against “the erosion of institutional integrity and the unchecked power of unelected bureaucrats.”

Deaton, who gained recognition through his involvement in Ripple’s legal dispute with the SEC, committed to taking on the role without compensation.

“The American people deserve the truth far more than I or anyone else needs another taxpayer-funded paycheck,” he remarked.

This initiative follows a recent legal development, with a court permitting Coinbase to access unredacted Federal Deposit Insurance Corporation (FDIC) documents.

These documents may provide insights into the involvement of federal agencies in the alleged Operation Chokepoint 2.0.

As a former prosecutor and Special Assistant United States Attorney I’m very serious about volunteering to help lead a federal investigation into ChokePoint 2.0. I would accept the responsibility without pay. The American people deserve the truth far more than I or anyone… https://t.co/LFdhpCixnr

— John E Deaton (@JohnEDeaton1) January 4, 2025

Coinbase’s chief legal officer, Paul Grewal, commented on the filings, highlighting evidence of “a coordinated effort to halt all forms of crypto activity — from basic BTC transactions to more complex options.”

The alleged mastermind behind the initiative, former FDIC Chair Martin Gruenberg, resigned in November, months after the failures of Silvergate and Signature Bank left crypto exchanges like Binance without U.S. banking partners.

Deaton’s proposal follows his unsuccessful attempt to secure a Massachusetts Senate seat against crypto critic Senator Elizabeth Warren.

During the campaign, Deaton accused Warren of prioritizing her “anti-crypto army” over addressing issues impacting working-class Americans.

US Cryptocurrency Owners Anticipate Reduced Regulation

Cryptocurrency enforcement in the United States may become less stringent under the forthcoming administration of Republican President-elect Donald Trump, with regulatory priorities likely to shift.

Speaking at a legal conference in New York, current and former senior government attorneys indicated that while financial fraud cases will still be pursued, the Justice Department’s focus will likely shift toward immigration enforcement, a key campaign promise of Trump.

Scott Hartman, co-chief of the securities and commodities task force at the U.S. Attorney’s Office in Manhattan, disclosed that fewer resources will be allocated to monitoring cryptocurrency crimes.

Recently, the SEC has faced increasing criticism due to its “regulation-by-enforcement” approach to the crypto industry.

Critics contend that the SEC has not established a clear regulatory framework for cryptocurrencies, opting instead to pursue legal action against significant industry players.

As reported, the Republican Party is preparing to introduce a comprehensive crypto market structure bill within the first 100 days of the upcoming legislative session, according to Representative French Hill.

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