The conflict between the world of cryptocurrencies and traditional finance is once again at the forefront, with Ripple and Circle in the spotlight. Prominent crypto lawyer John Deaton has criticized the American Bankers Association (ABA) for pressuring regulators to deny these blockchain leaders a chance at trust bank licensing.
Crypto vs Banks: Deaton's Reaction
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.
Please tell your friends at the American Bankers Association to back off. — John Deaton
Ripple and Circle's Moves
Ripple and Circle have applied for national trust bank charters from the U.S. Office of the Comptroller of the Currency (OCC). Ripple aims 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.
Banking Lobby Pushback
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, Ripple and Circle do not meet that requirement since they are focused on digital asset custody and payments, not traditional fiduciary work.
The ongoing conflict between crypto innovations and the traditional banking system is intensifying. The outcome for Ripple and Circle could significantly influence the future of finance and how modern technologies integrate into traditional banking.
