A redacted report detailing the Federal Deposit Insurance Corporation's internal communications about cryptocurrency-related banking activities has reignited calls for accountability in US financial oversight.

Attorney John E. Deaton, a prominent cryptocurrency advocate and former Senate candidate, has urged Congress to investigate what he claims is a coordinated effort by regulators to marginalize the digital asset sector through “Operation ChokePoint 2.0.”

the DocumentsFirst issued through a court order to publicly traded cryptocurrency exchange Coinbase in November, it clarifies FDIC guidance advising banks to temporarily halt cryptocurrency-related services during review.

Critics, including Deaton, say the directives reveal a concerted attempt to restrict access to basic financial infrastructure, potentially stifling legal businesses within the booming sector.

“What we have learned so far points to coordinated, multi-agency action driven by political agendas rather than sound policy or law,” Deaton said chirp Saturday.

Deaton who didn't make it challenge Senator Elizabeth Warren in Massachusetts in 2024 Senate race On a pro-crypto platform, he described the implications of ChokePoint 2.0 as going beyond the cryptocurrency industry.

“This is not just a fight for cryptocurrencies,” Deaton said. “It is a fight against the erosion of institutional integrity and the absolute power of unelected bureaucrats.”

Warren, a vocal critic of cryptocurrencies, won re-election by a large margin, maintaining her influence in shaping US financial policy. Meanwhile, Deaton continued his defence, vowing to lead an investigation into what he claims was regulatory overreach.

Deaton asserts that actions like those described in the FDIC report could set a dangerous precedent by enabling agencies to stifle innovation and selectively enforce laws without proper oversight.

This controversy mirrors previous disputes involving Custodia Bank, which File a lawsuit against the Federal Reserve After the main account is rejected.

Deaton described the Custodia case as pivotal, warning that it underscores the growing influence of regulators on private companies.

The Federal Deposit Insurance Corporation (FDIC) has defended its supervisory practices, citing the need to evaluate risks associated with volatile markets.

However, Deaton argues that emerging evidence suggests that political motivations may underlie some regulatory actions rather than adherence to sound policy.