Crypto Chaos: Banks vs. The Future 💸

by

Oh dear. It appears the crypto world, that wonderfully baffling realm of digital whatnots, is having another dust-up with the established financial order. This time, Ripple and Circle, two companies attempting to drag banking into the 21st century (good luck with that!), are finding themselves in the crosshairs. And leading the charge against the old guard? None other than John Deaton, a crypto lawyer who appears to possess a truly remarkable talent for… strong opinions. He’s having a bit of a go at the American Bankers Association (ABA), accusing them of leaning on regulators to deny these blockchain pioneers a federal trust bank license. Honestly, it’s like watching a particularly polite cage fight.

This kerfuffle, as the British would say, could actually matter. It’s a clash between a banking system that’s been around since, well, pretty much forever, and the bright, shiny (and occasionally volatile) world of digital finance. Prepare for drama!

Crypto vs. Banks: Deaton Pushes Back

Deaton, in a recent and rather emphatic post on X (formerly known as Twitter, because rebranding is *always* a good idea), basically told lawmakers to tell the ABA where to shove it. A slightly more diplomatic way of putting it, of course. He argues that denying Ripple and Circle a charter would stifle innovation and keep us all stuck with…well, the current system. Which, let’s be honest, isn’t always a picnic. 🙄

DEAR @SecScottBessent, @DavidSacks @davidsacks47 @BoHines:

Please tell @ewarren’s friends at the American Bankers Association to F off.

— John E Deaton (@JohnEDeaton1) July 22, 2025

Vincent Van Code (yes, really), an “industry expert,” piled on, calling the ABA’s move “purely anti-competitive.” He declared that it’s “time for the next Gen finance to replace the cabal.” A “cabal”! I mean, really. You’d think people in finance would have better things to worry about than shadowy conspiracies… wouldn’t you? He also praised Ripple and Circle for cutting through all the usual red tape – apparently, bureaucracy is a major inconvenience.

Ripple and Circle Make Their Move

So, Ripple and Circle have applied for these coveted 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 (whatever those are, precisely), and Circle wants to create…wait for it…the First National Digital Currency Bank. The name alone is enough to give a traditional banker indigestion. 🤢

Both companies are reacting to the GENIUS Act (because apparently everything needs a catchy acronym), passed in July 2025. This law insists that stablecoin issuers need federal supervision, which is a sensible idea, even if it does involve more paperwork.

Banking Lobby Pushes Back with Legal Arguments

Naturally, the ABA isn’t thrilled. They’re arguing that these charters should be reserved for companies that actually *manage* things, like estates or assets. You know, proper financial fiddling. According to some dusty old law (12 U.S.C. § 92a, in case you’re taking notes), Ripple and Circle don’t quite fit the bill, being more focused on digital stuff and payments. Go figure.

Concerns About Crypto Flooding the System

The ABA is also worried that approving Ripple and Circle will open the floodgates for other crypto companies, all desperate to get their hands on banking licenses without having to follow all the same rules. Apparently, that’s a bad thing. They’re particularly bothered by a previously rescinded “Interpretive Letter 1179” which was, shall we say, a bit flexible in its interpretation of fiduciary duties. They want things black and white: no fiddling with estates, no trust charter. Simple, right?

Old System vs. New Ideas

Banking types claim letting Ripple and Circle in could destabilize things. Crypto enthusiasts (like Mr. Deaton) argue that it’s just a desperate attempt to protect the status quo. It’s a classic tale of tradition versus innovation, only with more blockchain.

The real question is, will we embrace this brave new world of digital finance or will the old guard succeed in keeping it at bay? The future of money, it seems, is hanging in the balance. And frankly, it’s all a bit exhausting. 😴

Read More

2025-07-23 14:39