Pro-XRP attorney and Republican Party candidate for Massachusetts Senate John E. Deaton has issued harsh criticism of what he called pervasive corruption within federal agencies, including the Federal Reserve (Fed). Deaton, through a job on the social media platform
Why the pro-XRP lawyer is outraged
“As I have said many times, we are living in a period that history books will later describe as ‘THE AGE OF CORRUPTION,'” Deaton said. He expressed particular disdain for the practice of “revolving doors,” in which federal regulators rise to high positions within industries they previously oversaw. “The revolving door existing within these agencies must be closed once and for all,” said the lawyer who represented 75,000 XRP holders at the agency. Ripple v. SEC case underlines.
Deaton announced plans to propose and support legislation that would impose a five-year ban preventing federal regulators from moving directly to the industries they once regulated. “A person should not be able to leave the FDA and immediately go to work for Pfizer,” Deaton said, emphasizing the urgent need for such reforms to dismantle 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 shock at the Federal Reserve’s perceived preferential treatment of another institution, just weeks after a federal judge denied Custodia Bank’s application for a Fed master account and membership in the Fed.
His outrage follows the surprising approval of a master account with Numisma, a Connecticut-based fintech bank formerly known as Currency Reserve, which is notably neither FDIC insured nor government regulated federal.
“I’M SPEECHLESS. Is this what it seems: special treatment from the Fed for another former insider, just weeks after the Fed’s inspector general “suspended” his investigation into the Fed’s main account practices? Publicly questioned at length via
“The Fed’s refusal order detailed why these issues can’t be fixed, but suddenly a bank with the same regulatory structure got a pass from the Fed — and a former governor of the Fed is involved? What the…” she said.
FOX Business reporter Eleanor Terrett shared the scoop: “Connecticut-based fintech bank Numisma (formerly called Currency Reserve) has received conditional approval to access a Federal Reserve master account, making it the second bank uninsured and not regulated by the federal government. to receive one in recent years.
Terrett pointed out that the two banks granted such approval had direct ties to former Federal Reserve officials, raising questions about potential conflicts of interest and the integrity of the approval process.
THE refusal of a main account Access to Custodia Bank represents a significant setback for the crypto industry, which views such access as essential for more seamless integration into the broader US financial system. This access would allow crypto-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 hints at 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 of X @JohnEDeaton1, chart from TradingView.com
