A redacted report detailing the Federal Deposit Insurance Corporation’s internal communications about crypto-related banking activities has reignited calls for accountability in U.S. financial oversight.
Attorney John E. Deaton, a prominent crypto advocate and former Senate candidate, has urged Congress to investigate what he alleges is a coordinated effort by regulators to marginalize the digital asset sector through "Operation ChokePoint 2.0."
The documents, first released through a court order to publicly traded crypto exchange Coinbase in November, outline FDIC directives advising banks to pause crypto-related services while under review.
Operation Choke Point 2.0: Crypto Founders Silenced by 'Secret' Debanking?
What happens when over 30 tech founders lose access to banking services without warning? According to Marc Andreessen, this is no accident—it’s a government conspiracy. Andreessen, co-founder of venture capital firm Andreessen Horowitz, claims the Biden administration is using financial exclusion as a weapon in what he terms “Operation Choke Point 2.0.” Speaking on "The Joe Rogan Experience" podcast on Tuesday, Andreessen revealed, “Over 30 founders had been debanked in the last four years,” cal...
Critics, including Deaton, argue the directives reveal an orchestrated attempt to restrict access to essential financial infrastructure, potentially stifling lawful businesses within the burgeoning sector.
“What we’ve learned thus far suggests coordinated, multi-agency action driven by political agendas rather than sound policy or law,” Deaton tweeted Saturday.
Deaton, who unsuccessfully challenged Senator Elizabeth Warren in the 2024 Massachusetts Senate race on a pro-crypto platform, described the implications of ChokePoint 2.0 as transcending the crypto industry.
“This isn’t just a fight for crypto,” Deaton said. “It’s a fight against the erosion of institutional integrity and the unchecked power of unelected bureaucrats.”
Warren, a vocal crypto critic, won reelection by a significant margin, maintaining her influence in shaping U.S. financial policy. Deaton, meanwhile, has continued his advocacy, pledging to lead an investigation into what he claims is regulatory overreach.
Actions like those outlined in the FDIC report could set a dangerous precedent by enabling agencies to stifle innovation and selectively enforce laws without proper oversight, Deaton asserts.
Debanking Isn't New—It Was Happening Before Choke Point 2.0
Operation Choke Point has received a new wave of attention and scrutiny following a Joe Rogan interview during which Marc Andreesen claimed the government has purposefully debanked more than 30 tech founders. It's not just tech that's paying attention, the crypto industry has been keenly aware of it for years. But this is not entirely new. Debanking is a process in which all of a customer's accounts are closed by a bank so that they can no longer access them at all. This started, under the title...
The controversy echoes prior disputes involving Custodia Bank, which sued the Federal Reserve after being denied a master account.
Deaton has labeled Custodia’s case as pivotal, warning it underscores the growing influence of regulatory bodies over private enterprises.
The FDIC has defended its oversight practices, citing the need to evaluate risks tied to volatile markets.
However, Deaton argues that emerging evidence suggests political motivations may underlie some regulatory actions rather than adherence to sound policy.
