The battle lines are drawn over “Operation Chokepoint 2.0.” Key crypto industry figures are now publicly taking on US Vice President JD Vance, demanding the Donald Trump administration answer for what they describe as an ongoing stealth campaign against crypto banking access.
Caitlin Long, who heads Custodia Bank, put it bluntly, rejecting Vance’s recent claim that this alleged covert regulatory crackdown is “dead.”
Active Fed Anti-Crypto Policies Prove Chokepoint 2.0 Continues
In a post on X, Long stated, “I’m sorry to report what you said isn’t true,” pointing to ongoing Federal Reserve policies that remain in place since January 2023.
I’M SORRY TO REPORT WHAT YOU SAID ISN’T TRUE @JDVance:
“#OperationChokePoint2.0 is dead & it’s not coming back under the Trump Administration.”
Until the Fed rescinds its Jan 27, 2023 regulation (still in place) & its non-public #debanking tools are gone, it’s not over.
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) May 28, 2025
The policy in question, a Fed regulation allegedly used to quietly de-bank crypto firms, is still active, Long emphasized, along with other “non-public tools” being wielded to shut down access to banking for lawful digital asset businesses.
Related: John Deaton Sees Big Bitcoin Price Swing: $125K Then $112K Dip
She argues that until these measures are officially rolled back and structurally dismantled, Operation Chokepoint 2.0 lives is still very much active.
John Deaton Calls on VP Vance for Independent Probe into Crypto Debanking
John Deaton, pro-XRP lawyer and frequent industry advocate, echoed Long’s sentiment, addressing Vance directly. “From one Marine, author, and JD to another,” Deaton said, “what Caitlin states is true.”
He urged the Vice President to push for an independent investigation into the operation, even floating former Florida Attorney General Pam Bondi’s name as someone who could lead such a probe.
Both Long and Deaton also accused Washington of weaponizing regulatory frameworks to strangle lawful innovation, warning that mere symbolic victories won’t prevent future abuse.
Agreed–the govt should never again weaponize the banking system against US citizens on either side of the political divide. The tools to do just that are still in place tho. As @SenLummis says, the same people who used them to crush those they don’t like are also still in place.
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) May 28, 2025
Marathon CEO Details Systemic De-banking, Kraken “Barely Made It”
The core of the criticism revolves around aggressive financial exclusion that many in the crypto space say has continued unabated.
Marathon CEO Fred Thiel reported a systemic denial of banking, lending, and payment services across the industry throughout 2023 and 2024. In a statement, Thiel noted that digital asset firms, regardless of compliance status, were cut off from traditional financial infrastructure with little or no explanation. This includes abrupt bank account closures, credit denial–even rejection of basic corporate cards.
Related: Deaton Sees Ripple’s Hidden Road Move as Best Example of Crypto–Wall Street Convergence
Jesse Powell, co-founder of Kraken, also revealed the exchange barely survived after being de-banked in the US, relying heavily on its European operations to stay afloat. According to Deaton, Kraken’s ordeal mirrors similar experiences faced by Ripple CEO Brad Garlinghouse and Long herself.
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