Pro-XRP Lawyer Says “Banks Are the Enemy of the Public,” Criticizes Opposition to Stablecoin Interest

▲ Banks, Stablecoins/ChatGPT-generated image

John Deaton, a lawyer known as an advocate for XRP, strongly criticized the banking sector over ongoing virtual asset legislative talks at the White House, accusing banks of trying to prohibit stablecoin yield and calling them enemies of ordinary citizens.

According to cryptocurrency media outlet U.Today on February 20 (local time), Deaton took to his X (formerly Twitter) account to directly criticize the actions of the banking sector regarding the U.S. cryptocurrency market structure bill (CLARITY) currently under discussion at the White House. The meeting, attended by major crypto companies such as Ripple and Coinbase along with representatives of the U.S. banking industry, focused on regulatory measures for stablecoins, with banks reportedly making every effort to block the provision of yields on stablecoins.

Responding to breaking news shared by former Fox Business reporter Eleanor Terrett about the White House meeting, Deaton launched a scathing attack, stating, “Banks have been the enemy of ordinary people for as long as I have been alive.” According to Terrett’s report, the meeting was attended by major banking advocacy groups, including the American Bankers Association and the Bank Policy Institute, which are seeking to prevent stablecoin issuers from offering interest or bonuses.

Crypto industry participants at the meeting described the discussions as productive and constructive but suggested that significant concessions were made regarding the yield model. The industry’s initial proposal to generate returns on idle crypto balances has reportedly been removed from the negotiation table, and any future rewards are expected to be strictly controlled. Both sides are now engaged in last-minute negotiations over whether rewards tied to specific activities will be permitted.

Meanwhile, the banking sector continues to maintain a hardline stance, advocating for strong penalties to prevent regulatory circumvention. Terrett reported that banks are pushing for hefty fines of up to $500,000 per day for companies that violate regulations, to be enforced through the Securities and Exchange Commission (SEC), the Treasury Department, and the Commodity Futures Trading Commission (CFTC). This pressure from banks is interpreted as an effort to prevent stablecoins from replacing traditional bank deposits and to preserve their vested interests.

The virtual asset industry, including Ripple, argues that innovative, crypto-friendly regulations must be adopted for the United States to become a global cryptocurrency hub. As the legislative deadline of March 1 approaches, tensions between the banking sector and the crypto industry over whether to allow stablecoin yields and the severity of penalties are expected to intensify. Deaton’s remarks reflect growing investor resentment toward entrenched financial powers and are further amplifying attention on the bill’s outcome.

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