John E. Deaton, an attorney known for his advocacy of XRP and crypto-friendly regulations, has issued a stark warning regarding reports that Kevin Warsh and Bob Stebbins are leading candidates for key financial positions in the Trump administration. Deaton believes that their appointments could derail former President Donald Trump’s vision of making the United States a global crypto leader.
Why Pro-XRP Lawyer Deaton Issues A Warning
“The two most discouraging things I’ve heard today is that Bob Stebbins may be in the lead for SEC Chair and this: Kevin Warsh in the lead for Treasury Secretary,” Deaton stated via X. “I can’t think of a worse combined pick for those two positions. How tf did we go from exciting news with Scott Bessent, Bill Haggerty, or Howard Lutnick as Treasury Secretary to Kevin Warsh?”
The pro-XRP lawyer’s comments came in response to Charles Gasparino, a senior correspondent at FOX Business, who reported on November 20: “Breaking: Trust me on this—Kevin Warsh is in the lead position for US Treasury Secretary as I have been reporting. That doesn’t mean it’s a done deal, but that’s what my sources have been saying.”
Deaton elaborated on his concerns, emphasizing the potential negative impact on the crypto industry. “My God, this guy sounds like Elizabeth Warren for Christ’s sake. If Warsh and Stebbins get the two slots, Donald Trump’s vision of an economic revival and America being the crypto capital of the world will likely never be fulfilled.”
Kevin Warsh, a former Federal Reserve governor, has previously expressed skepticism about private cryptocurrencies and has advocated for a US central bank digital currency (CBDC). In a Wall Street Journal article titled “The U.S. Needs a Better Digital Dollar” published on November 20, 2022, Warsh warned about China’s digital yuan potentially undermining America’s financial dominance.
“Don’t be deceived by the thousands of private cryptocurrencies masquerading as money in some form of circulation. Many of these schemes are fraudulent, and most are worthless,” Warsh wrote. “Cryptocurrency is a misnomer. It isn’t secretive, and it isn’t money. It is software. And it is a significant technological breakthrough that poses promise and peril for the American-led global financial system.”
Warsh criticized the Biden administration’s approach to stablecoins, stating: “I am skeptical that a host of private cryptocurrencies are sufficiently strong and reliable proxies for the US dollar. I also doubt bank-like regulation of private stablecoins would ensure their stability in stressful times, absent government bailouts.”
He also advocated for the development of a digital dollar focused on wholesale transactions: “The US should announce the essential design features of a digital dollar to be used exclusively for wholesale transactions.”
Deaton is not alone in his apprehension. Other influential figures in the crypto industry have echoed his sentiments. Nic Carter, a well-respected crypto journalist, remarked, “First stumble by Trump. Unless Warsh renounces his prior views, we have a problem.”
Ryan Selkis, founder and former CEO of Messari Crypto, outlined his issues with Warsh in a detailed post: “Pro-CBDC and deferential to the Fed (a la Yellen), very aggressive re stablecoin regulation, a 12-18 month placeholder (2026 Fed Chair?) that creates Day 1 distractions as campaigning for a mid-term replacement would start immediately.”
Bob Stebbins, currently a partner at a law firm specializing in corporate governance, has emerged as a potential nominee for SEC Chair under the Trump administration this week. His possible appointment has drawn criticism from industry leaders who fear a continuation of stringent regulatory approaches toward crypto.
Brad Garlinghouse, CEO of Ripple, expressed his concerns: “Choosing Stebbins would be akin to bringing us back to the start of the regulation by enforcement era.” Garlinghouse advocates for a reform-minded leader at the SEC to establish clearer crypto regulations and foster innovation, as Bitcoinist reported.
Deaton urged Trump to reconsider, suggesting alternatives who are more aligned with the crypto industry’s goals. “Bessent seemed to be the first choice of Donald Trump. Please, stick with it or go with Brian Brooks as Treasury Secretary,” the pro-XRP lawyer said, referring to Scott Bessent, Bill Haggerty, Howard Lutnick, and Brian Brooks—all figures seen as more favorable to the crypto sector.
At press time, XRP traded at $1.11.
