XRP supporter and Lawyer John Deaton stated that they want to help the Trump Administration investigate Operation Choke Point 2.0. Deaton stated on the social media platform that he would not take a salary and only wanted to expose multi-agency coordination and possible corruption related to the government’s efforts to isolate crypto firms from banks.
Custodia Bank’s Legal Struggle
The lawyer argues that Custodia Bank’s legal fight against the Fed is the “most important case” for the crypto industry. Beyond crypto assets, this fight is critical over whether access to basic financial infrastructure can be arbitrarily denied, Deaton said.
Government’s Approach to the Crypto Industry
Deaton emphasized that such government actions set a dangerous precedent where regulators can silence industries they don’t like. This can restrict innovation, competition and economic opportunities.
He stated that Custodia and Choke Point 2.0 have much broader implications than the crypto industry and determine whether America can protect free enterprise under the rule of law.
“Custodia Bank’s challenge and Choke Point 2.0 goes beyond digital assets, banking records or blockchain.” – Deaton.
Coinbase’s Comments
Sharing Deaton’s views, Paul Grewal, Coinbase’s chief legal officer, claimed that the FDIC is trying to sabotage various activities in the crypto industry. Grewal said Coinbase filed Freedom of Information Act requests regarding letters the FDIC sent to banks about crypto services.
“FDIC, we finally received the OCP 2.0 letters. You can read them for yourself…” -Grewal.
Grewal stated that there is clear evidence that the government is deliberately making efforts to hinder crypto growth in the US and argued that the new Congress should initiate hearings on the issue.
Future Steps
Speaking out from the likes of John Deaton and Paul Grewal could raise broader awareness of government interventions in the crypto industry. These developments could lead to significant changes in crypto firms’ access to financial infrastructure.
The crypto industry may face challenges to growth and innovation in the face of regulatory uncertainties and government policies. Therefore, sectoral dialogue and clarification of regulatory frameworks are of great importance.
Crypto firms and their supporters will carefully monitor the long-term effects of such legal challenges and seek to comply with relevant regulations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
