News View Non-AMP

XRP Lawyer John Deaton Slams ABA Over Ripple, Circle Bank License Block

Published by
Zafar Naik and Qadir AK

The crypto world is once again clashing with traditional finance, and this time, Ripple and Circle are at the center of it all. XRP advocate and well-known crypto lawyer John Deaton has strongly criticized the American Bankers Association (ABA) for pressuring regulators to deny federal trust bank licenses to these blockchain leaders.

This growing dispute could shape the future of finance, as modern digital innovators challenge a banking system that’s been in place for over a century.

Crypto vs. Banks: Deaton Pushes Back

In a fiery post on X, Deaton urged lawmakers to reject what he called the ABA’s attempt to block progress. He argued that refusing Ripple and Circle a national trust charter would hold back innovation and keep the financial system stuck in the past.

Industry expert Vincent Van Code amplified Deaton’s stance, branding the ABA’s move as “purely anti-competitive.” He praised digital-first firms like Ripple and Circle for slashing bureaucracy and overhead, declaring, “The century is over. It is now time for the next Gen finance to replace the cabal.”

Ripple and Circle Make Their Move

Ripple and Circle have applied for national trust bank charters from the U.S. Office of the Comptroller of the Currency (OCC). Ripple wants to expand its payment and stablecoin services through a federal license. Circle, on the other hand, plans to create the First National Digital Currency Bank, which would hold USDC reserves under federal oversight.

Both moves are part of efforts to align with the new GENIUS Act passed in July 2025. The law requires stablecoin issuers to operate under direct federal supervision, either as banks, credit unions or specially regulated non-bank entities overseen by the OCC.

The ABA, along with five other financial organizations including America’s Credit Unions and the National Bankers Association, is asking the OCC to reject the applications. They argue that national trust charters should only be granted to companies that carry out fiduciary services like managing estates or assets.

According to federal law under 12 U.S.C. § 92a, Ripple and Circle do not meet that requirement since they are focused on digital asset custody and payments, not traditional fiduciary work.

Concerns About Crypto Flooding the System

The ABA also warned that approving Ripple and Circle could trigger a wave of similar applications from other crypto companies. These firms, they argue, would gain access to the banking system without facing the same strict rules traditional banks must follow, such as those under the Bank Holding Company Act.

Banking groups criticized the OCC’s past guidance as well. They pointed to the now-rescinded Interpretive Letter 1179, which had allowed more flexible interpretations of fiduciary duties. The ABA now wants a clear rule: no fiduciary work means no trust charter.

Old System vs. New Ideas

Banking advocates claim that letting Ripple and Circle in could weaken financial stability and move away from the original purpose of trust charters. But Deaton and other crypto supporters argue that this resistance is just an effort to protect the status quo.

The bigger question is whether innovation will be embraced or blocked. With crypto’s potential to modernize finance, the outcome of this battle could decide who controls the future of money.

FAQs

What do Ripple and Circle want from the OCC?

They’ve applied for national trust bank charters to expand services under U.S. federal regulation.

Why is the ABA opposing crypto bank charters?

The ABA says Ripple and Circle don’t offer fiduciary services required for trust charters by law.

What does the GENIUS Act require from stablecoin issuers?

It mandates that stablecoin issuers operate under direct federal oversight, like banks or OCC-regulated firms.

Zafar Naik and Qadir AK

Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

Recent Posts

Teucrium CEO Slams Gary Gensler’s ETF U-Turn, Reveals Why He’s Backing XRP

In a recent interview, Sal Gilbertie, CEO of Teucrium Trading, opened up about his firm’s…

July 23, 2025

Jim Cramer Plans to Own Bitcoin and Ethereum as Hedge for His Kids

Jim Cramer revealed he intends to “own” Bitcoin and Ethereum to protect his children’s financial…

July 23, 2025

Ripple Price Prediction As SEC Approves And Pauses Bitwise ETF Holding XRP

The US Securities and Exchange Commission (SEC) recently made headlines by granting approval for Bitwise’s…

July 23, 2025

Square Launches Compact Mobile POS Terminal Square Handy in Japan

Square has launched Square Handy, a compact and durable mobile POS terminal designed for Japan’s…

July 23, 2025

U.S. Stablecoin Legislation Sparks Issuance Boom

New U.S. stablecoin legislation is driving a significant increase in stablecoin issuance from banks, asset…

July 23, 2025

Robinhood Launches Ethereum and Solana Staking for U.S. Investors

Robinhood has introduced staking for Ethereum (ETH) and Solana (SOL) to its U.S. customers, enabling…

July 23, 2025