John Deaton Offers to Lead Trump-Era Probe Into Alleged Crypto Crackdown ‘Operation Chokepoint 2.0’

Prominent crypto advocate and former U.S. prosecutor John Deaton has proposed leading a Trump administration investigation into the rumored “Operation Chokepoint 2.0,” an alleged initiative aimed at severing cryptocurrency companies from the traditional banking system.

Deaton made his offer in a Jan. 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 creates a dangerous precedent where regulatory bodies can quietly suppress entire industries they disfavor, stifling innovation, competition, and economic opportunity,” Deaton stated.

Deaton Calls Operation Chokepoint 2.0 More Than a Crypto Issue

He framed the initiative as more than a crypto issue, calling it a fight against “the erosion of institutional integrity and the unchecked power of unelected bureaucrats.”

Deaton, who gained prominence through his involvement in Ripple’s legal battle with the SEC, pledged to undertake the task without salary.

“The American people deserve the truth a hell of a lot more than I or anyone else needs another taxpayer-funded paycheck,” he added.

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

These files could provide insights into the role of federal agencies in the alleged Operation Chokepoint 2.0.

As a former prosecutor and Special Assistant United States Attorney I am very serious about volunteering to help lead a federal investigation into ChokePoint 2.0. I would accept the task without salary. The American people deserve the truth a hell of a lot 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, noting evidence of “a coordinated effort to stop a wide variety of crypto activity — from basic BTC transactions to more complex offerings.”

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

Deaton’s proposal comes on the heels of his unsuccessful bid for 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 affecting working-class Americans.

US Crypto Owners Expect Less Regulation

Cryptocurrency enforcement in the United States may ease under the upcoming administration of Republican President-elect Donald Trump, with regulatory priorities expected to shift.

Speaking at a legal conference in New York, current and former senior government lawyers indicated that while financial fraud cases will still be pursued, the Justice Department’s focus will likely move 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, revealed that fewer resources will be allocated to policing cryptocurrency crimes.

As of late, the SEC has been facing growing criticism due to its “regulation-by-enforcement” approach to the crypto industry.

Critics argue that the SEC has failed to establish a clear regulatory framework for cryptocurrencies, opting instead to pursue legal action against key 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.