John Deaton has launched a fierce response against the American Bankers Association (ABA) following its recent plea to the U.S. Office of the Comptroller of the Currency (OCC) to halt federal trust charters for crypto firms, such as Ripple and Circle
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Ripple and Circle Face Fresh Resistance From Banking Lobby
In a recent X post, Deaton directly addressed policymakers, telling them to ignore what he called obstructionist efforts from the American Bankers Association. His criticism followed a formal request by the ABA and five other industry groups, including America’s Credit Unions and the National Bankers Association. They urged the OCC to delay crypto trust charter approvals until broader public scrutiny is possible.
Top expert Vincent Van Code also echoed Deaton’s sentiment, labeling the move as “purely anti-competitive.” He argued that digital-first companies like Ripple and Circle are modernizing finance by reducing overhead and bureaucracy.
The century is over. It is now time for the next Gen finance to replace the cabal.
Nothing can stop Ripple and XRP. If democracy is real, then the voice of millions of crypto supporters should matter.
Ripple had filed for a national banking license with the OCC, a move designed to integrate its stablecoin and payment services more deeply into the mainstream financial system. Similarly, Circle also applied to function as a national trust bank subject to federal regulation. Reserves for Circle’s flagship stablecoin, USDC, would be partially held by the new organisation, First National Digital Currency Bank.
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Banking Groups Cite Legal Gaps and Systemic Risk
At the heart of the ABA’s argument is a claim that national trust bank charters should only go to firms that engage in fiduciary activities as historically required under 12 U.S.C. § 92a. According to the ABA, neither Ripple nor Circle plans to provide these traditional services. Instead, they seek access to federal banking privileges, while focusing primarily on digital asset custody and payments.
The letter warned that granting these applications could set a dangerous precedent, allowing non-fiduciary crypto firms to bypass the Bank Holding Company Act and other rules that regular banks must follow. The groups also raised concerns about possible “copycat” applications, predicting that dozens of digital asset firms could follow Ripple and Circle into the banking system without meeting the same regulatory obligations.
Ripple and Circle’s push for a banking license aligns with the GENIUS Act, passed in July 2025, which requires stablecoin issuers to operate under federal oversight, either as banks, credit unions, or specially chartered non-banks supervised by the OCC. Seeking these licenses could help both Ripple and Circle meet compliance standards and expand their offerings.
However, the ABA believes this would lead to some discrepancies. They further criticized the OCC’s past interpretive guidance, especially the now-rescinded Interpretive Letter 1179, which had allowed broader, case-by-case definitions of fiduciary activity. The ABA now insists on a return to clearer, more restrictive standards: “no fiduciary work, no trust charter.”
Critics from the banking sector insist these applications threaten systemic stability and violate the original intent of federal trust charters. Meanwhile, supporters like Deaton argue that blocking Ripple and Circle undermines innovation and competition, keeping the financial system tied to outdated models.
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Michael Adeleke
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.
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XRP Lawyer Condemns ABA Move to Block Ripple And Circle Bank Licenses
John Deaton has launched a fierce response against the American Bankers Association (ABA) following its recent plea to the U.S. Office of the Comptroller of the Currency (OCC) to halt federal trust charters for crypto firms, such as Ripple and Circle
Advertisement Advertisement
Ripple and Circle Face Fresh Resistance From Banking Lobby
In a recent X post, Deaton directly addressed policymakers, telling them to ignore what he called obstructionist efforts from the American Bankers Association. His criticism followed a formal request by the ABA and five other industry groups, including America’s Credit Unions and the National Bankers Association. They urged the OCC to delay crypto trust charter approvals until broader public scrutiny is possible.
Top expert Vincent Van Code also echoed Deaton’s sentiment, labeling the move as “purely anti-competitive.” He argued that digital-first companies like Ripple and Circle are modernizing finance by reducing overhead and bureaucracy.
Ripple had filed for a national banking license with the OCC, a move designed to integrate its stablecoin and payment services more deeply into the mainstream financial system. Similarly, Circle also applied to function as a national trust bank subject to federal regulation. Reserves for Circle’s flagship stablecoin, USDC, would be partially held by the new organisation, First National Digital Currency Bank.
Advertisement Advertisement
Banking Groups Cite Legal Gaps and Systemic Risk
At the heart of the ABA’s argument is a claim that national trust bank charters should only go to firms that engage in fiduciary activities as historically required under 12 U.S.C. § 92a. According to the ABA, neither Ripple nor Circle plans to provide these traditional services. Instead, they seek access to federal banking privileges, while focusing primarily on digital asset custody and payments.
The letter warned that granting these applications could set a dangerous precedent, allowing non-fiduciary crypto firms to bypass the Bank Holding Company Act and other rules that regular banks must follow. The groups also raised concerns about possible “copycat” applications, predicting that dozens of digital asset firms could follow Ripple and Circle into the banking system without meeting the same regulatory obligations.
Ripple and Circle’s push for a banking license aligns with the GENIUS Act, passed in July 2025, which requires stablecoin issuers to operate under federal oversight, either as banks, credit unions, or specially chartered non-banks supervised by the OCC. Seeking these licenses could help both Ripple and Circle meet compliance standards and expand their offerings.
However, the ABA believes this would lead to some discrepancies. They further criticized the OCC’s past interpretive guidance, especially the now-rescinded Interpretive Letter 1179, which had allowed broader, case-by-case definitions of fiduciary activity. The ABA now insists on a return to clearer, more restrictive standards: “no fiduciary work, no trust charter.”
Critics from the banking sector insist these applications threaten systemic stability and violate the original intent of federal trust charters. Meanwhile, supporters like Deaton argue that blocking Ripple and Circle undermines innovation and competition, keeping the financial system tied to outdated models.
Advertisement
✓ Share:
Trending
Price Analysis
XRP Lawyer Condemns ABA Move to Block Ripple And Circle Bank Licenses
Canary’s SUI ETF Application Advances With SEC- Analyst Predicts All time High In August
Analysts Forecasts $2 Target for FARTCOIN Price As On-chain Data Shows Mega Whale Accumulation
Trump Backed World Liberty Financial Buys 3,400 Ethereum As Corporate Demand Soars for ETH
Bitwise Crypto Index Fund Holding BTC, ETH, XRP To Convert Into ETF
Solana Price Flashes Golden Cross as Staked SOL ETF Hits Key Milestone- Is $294 Next?
Cardano Price Forecast – Charles Hoskinson Predicts ADA Will Be Bigger Than ETH As Bulls Target $2.30 Next
Shiba Inu Price Prediction — SHIB Mirrors 2023 Pattern, Targets $0.0000456 as Whales Accumulate 1.7 Trillion Tokens
Solana Price Prediction- 21Shares Bets Big on Solana Instead Of Ethereum As SOL Targets $300
AVAX Price Targets $48 as DeFi TVL Approaches 3-Year High
 Best Crypto Presales To Invest In July 2025 – Top Upcoming Presale Tokens
 Best Crypto AI Trading Bots In 2025
 Top Meme Coins To Buy In July 2025
 Michael Adeleke
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses. Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.