John E. Deaton, a pro-XRP lawyer and Republican Party candidate for the Massachusetts Senate, expressed severe criticism of what he described as widespread corruption within federal agencies, including the Federal Reserve (Fed). Deaton, through a mail on the social media platform
Why the pro-XRP lawyer is outraged
“As I have said several times, we are living in a period that history books will later describe as: 'THE ERA OF CORRUPTION,'” Deaton said. He expressed particular disdain for the practice of “revolving doors,” in which federal regulators move into senior positions within industries they previously oversaw. “The existing revolving door within these agencies must be closed once and for all,” said the lawyer who represented 75,000 XRP holders in the Ripple v. SEC Case he emphasized.
Deaton announced his intention to propose and support legislation that would impose a five-year ban that would prevent federal regulators from directly transitioning the industries they once regulated. “A person should not be able to leave the FDA and then immediately go to work for Pfizer,” Deaton explained, highlighting the urgent need for these types of reforms to dismantle the entrenched networks of influence and self-interest within government agencies.
The conversation around these concerns arose from a statement by Caitlin Long, Founder and CEO of Custodia Bank. Today, Long expressed surprise at the Federal Reserve's perceived preferential treatment toward another institution, just weeks after a federal judge rejected Custodia Bank's application for a Federal Reserve master account and membership in the Federal Reserve. .
Their outrage followed the surprising approval of a master account for Numisma, a Connecticut-based fintech bank formerly known as Currency Reserve, which is notably neither FDIC-insured nor federally regulated.
“I AM SPEECHLESS. Is this what it appears to be: special treatment by the Federal Reserve for another former insider, just weeks after the Federal Reserve Inspector General 'suspended' his investigation into the Fed's master account practices? Publicly questioned by Long via
“The Federal Reserve's Custody Denial Order went into excruciating detail about why these problems are not curable, but suddenly a bank with the same regulatory structure got the nod from the Federal Reserve, and a former governor of the Federal Reserve? Federal Reserve is involved? “What…” he stated.
FOX Business reporter Eleanor Terrett shared the scoop: “Connecticut-based fintech bank Numisma (formerly Currency Reserve) has received conditional approval to access a Federal Reserve master account, making it the second bank not FDIC insured and not federally regulated. receive one in recent years.”
Terrett noted that both banks granted such approval had direct connections to former Federal Reserve officials, raising questions about potential conflicts of interest and the integrity of the approval process.
He denial of a master account Custodia Bank is a significant setback for the crypto industry, which sees such access as vital to integrating more seamlessly into the broader US financial system. This access would allow cryptocurrency-focused banks like Custodia to offer more efficient and potentially less expensive banking services by connecting directly to the Federal Reserve's payment systems.
This current situation casts a shadow over the crypto industry and further suggests a “Operation Choke Point 2.0”, an initiative by the Biden administration to stifle the crypto sector.
At press time, XRP was trading at $0.53351.
Featured image by X @JohnEDeaton1, chart from TradingView.com
