A petition for a federal probe into Operation ChokePoint 2.0, which has been rumored to target cryptocurrency activities throughout the United States, was brought by attorney John Deaton, a fervent supporter of XRP holders and a lawyer who was directly at odds with the SEC.
Attorney John Deaton calls for a federal investigation of Operation ChokePoint 2.0, which reveals the FDIC’s activities to restrict cryptocurrency services, like as transactions using Bitcoin and Ethereum. Citing unjust persecution and hampered innovation, the crypto sector supports Deaton. Deaton advocates openness and equitable rules for the expansion of cryptocurrency in the US.
He is prepared to carry out the investigation at no cost because, he argues, Americans deserve more transparency and scrutiny in light of the government’s growing involvement in the banking sector.
A vast coordinated attempt to prohibit services connected to cryptocurrencies was discovered via a discovery order. Coinbase successfully obtained the FDIC’s unredacted papers.
According to the exchange, the FDIC issued at least 25 letters to various banks between 2022 and 2023 requesting that they either cease or reduce their services pertaining to blockchain settlement networks, tokenized deposit products, and Bitcoin and Ethereum transactions.
Nic Carter, an industry analyst, claims that the regulations have stifled financial innovation, preventing the rise of goods like debit cards with Bitcoin rewards and loans secured by Bitcoin.
He went on to claim that the FDIC’s actions were anti-innovation and anti-consumer since they prevented the US from making any progress in financial technology.
In order to add his voice to the conversation, Deaton states that he fears Operation ChokePoint 2.0 will be very damaging. He contends that this is a direct assault on America’s free market system rather than just a bitcoin issue. This kind of action restricts the financial infrastructure available to respectable companies, setting a very negative precedent.
Deaton went on to say that the power to decide who succeeds and who fails in the marketplace should not belong to unelected bureaucrats. According to him, such policies seriously jeopardize America’s capacity to continue being a global leader in economics and innovation.
One of the worst-hit banks was Custodia Bank. They were unable to use the financial system. The Custodia case, however, was but one aspect of the larger problems pertaining to companies looking to innovate in the cryptocurrency market.
As Deaton points out, the consequences of Operation ChokePoint 2.0 extend far beyond the immediate repercussions on businesses; they also have an influence on their capacity to innovate and thrive in the sector as a whole. He characterized these acts as an outright attack on the fundamental tenets of openness and free market capitalism.
Deaton’s request for a probe has been warmly received by the cryptocurrency community. Paul Grewal, the Chief Legal Officer of Coinbase, made a sincere plea to Congress to hold hearings on the FDIC’s conduct.
Nic Carter applauded Coinbase’s decision to make the papers public and urged swift action to remove the systemic obstacles that have been put in place to hinder the sector. A improved regulatory environment has also been brought about by the government shift, which will now be led by President-elect Donald Trump.
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