The Federal Deposit Insurance Corporation's updated report detailing insider dealings regarding crypto-related banking activities has sparked calls for accountability in the US financial regulator.
Lawyer John E. Deaton, famous crypto advocate and former Senate candidate, urged Congress to investigate what he says is a concerted effort by regulators to isolate the digital asset sector through “Operation ChokePoint 2.0”.
Documents released in November under a court order for publicly traded crypto exchange Coinbase outline FDIC instructions for banks to temporarily suspend crypto-related services while they are under review.
Critics, including Deaton, say the guidelines represent a concerted attempt to limit access to essential financial infrastructure, which could hamper legitimate businesses in the growing sector.
“What we've learned so far is that coordinated multi-agency action is driven by political agendas, not sound policy or legislation,” Deaton said. He tweeted. Saturday.
Deaton, who failed Challenged Senator Elizabeth Warren in 2024 Massachusetts Senate race On the pro-crypto platform, ChokePoint 2.0 described the implications of crossing the crypto industry.
“This is not just a fight for crypto,” Deaton said. “It is a struggle against the erosion of institutional integrity and the power of unelected bureaucracies.”
Warren, a vocal crypto critic, won re-election by a wide margin, maintaining her influence in shaping US financial policy. Dayton, for his part, has continued to defend himself, promising to lead an investigation into what he says is an out-of-control attack.
Actions like those outlined in the FDIC report could set a dangerous precedent by stifling innovation and allowing agencies to selectively enforce laws without proper oversight, Deaton said.
The controversy echoes earlier disputes, including Custodia Bank suing the Federal Reserve after its main account was frozen.
Deaton made the custodian issue a pressing one, warning that it would highlight the impact of regulatory bodies on private enterprises.
The FDIC defended its supervisory practices, citing the need to assess the risks associated with volatile markets.
However, Deaton argued that emerging evidence suggests that political initiatives may lead to some regulatory action rather than actual policy.
Daily Debrief Newspaper
Start every day with top news stories, plus original features, podcasts, videos and more.
