Bitrabo Editorial
John E. Deaton, a lawyer supporting XRP and a candidate of the Republican Party for the Senate in Massachusetts, has criticized what he perceives as widespread corruption within federal institutions, including the Federal Reserve (Fed). Through a social media post on platform X, Deaton highlighted the prevalent lack of institutional integrity in the United States, labeling it as the “THE CORRUPTION ERA.”
Reasons Behind the Outrage of the Pro-XRP Attorney
Deaton expressed his belief that the current period will be remembered in history books as the “THE CORRUPTION ERA,” emphasizing his disapproval of the ‘revolving door’ practice where federal regulators transition into high-ranking positions within industries they previously regulated. He stressed the necessity of permanently closing this revolving door, aiming to prevent conflicts of interest. Deaton, who represented 75,000 XRP holders in the Ripple vs. SEC case, plans to introduce legislation proposing a five-year ban on regulators moving directly from overseeing industries to working within them. The attorney emphasized the urgency of these reforms to dismantle entrenched networks of influence and self-interest within government agencies.
These discussions were prompted by statements made by Caitlin Long, CEO of Custodia Bank, expressing astonishment at perceived favorable treatment by the Federal Reserve towards another institution following Custodia Bank’s failed application for a Fed master account. Long questioned the preferential treatment towards Numisma, a Connecticut-based fintech bank, especially since it lacks FDIC insurance and federal regulation.
Eleanor Terrett from FOX Business reported that Numisma received conditional approval for a Federal Reserve master account, becoming the second non-FDIC-insured, non-federally regulated bank to achieve this status in recent years. Both approved banks have ties to former Federal Reserve officials, raising concerns about potential conflicts of interest and the transparency of the approval process.
The denial of a master account to Custodia Bank poses a significant setback for the crypto industry, which views such access as crucial for seamless integration into the broader US financial system. This access enables crypto-focused banks to provide more efficient and potentially cost-effective banking services by linking directly to the Federal Reserve’s payment systems.
The current situation raises doubts about the crypto industry and hints at a potential hindrance to its progress, reminiscent of past efforts to suppress the sector. At the time of reporting, XRP was trading at $0.53351.