Crypto clans and crypto wars are back – a pro-crypto government will not solve investor madness
Pro-XRP attorney John Deaton is convinced that crypto tribalism, which was coined as a ploy to favor some digital assets over others, will soon make a comeback. In a message posted on
Deaton’s latest comments come after President Donald Trump signed an agreement Executive order on Thursday to form a “Crypto Assets Working Group” with newly appointed crypto czar David Sachs in attendance. The task force will reportedly explore creating a federal strategic stockpile of digital currencies.
People are wondering what I think about the crypto tribalism/crypto wars we are seeing spreading on this platform regarding whether there should be an SBR or SCR.
My response:
Yes!
It’s time.
Compared to the past four years, how amazing it is to see the industry…
– John E. Deaton (@JohnEDeaton1) January 24, 2025
In the order, Trump did not mention that reserves would be limited to Bitcoin. Some cryptocurrency enthusiasts had hoped that the executive order would lead to the creation of a national stockpile directly rather than simply “studying” the possibility of its existence.
According to Deaton, the ambiguity of the situation means that the government has stopped the “nepotism” that was witnessed during the term of former President Biden.
Attorney Deaton: Crypto-tribalism persists
Since 2022, John Deaton has been an outspoken critic of what he calls “crypto tribalism,” describing it as a major threat to the future of the industry. Deaton criticized industry leaders for not publicly siding with Ripple Labs in its legal battle with the US Securities and Exchange Commission (SEC).
In August 2020, the SEC filed a lawsuit against Ripple for illegally selling XRP as an unregistered security. Ripple says that XRP is a digital currency and not a security.
Deaton said in his social media posts warns A toxic tribal culture, where some digital assets and their communities conflict with each other, undermines the overall progress of the industry.
According to Deaton, who represents cryptocurrency platform Dragonchain, tribalism manifests itself in many ways. One of the most destructive of these policies is the tendency to welcome government intervention as long as it does not target the cryptocurrency of one’s choice.
“There’s nothing wrong with being passionate about the token or ecosystem you choose, but encouraging your peers to lose money because you think the token they choose is a coin doesn’t make sense to me,” the lawyer said on X.
His feelings have led him into confrontations with the likes of Ethereum co-founder Vitalik Buterin and IOHK founder Charles Hoskinson. In December 2022, Buterin looked to Ripple for its court statement, which described Bitcoin and Ethereum as “virtual currencies controlled by China.”
The Ripple/XRP team seems to be descending to new levels of weirdness. They claim that their cryptocurrency should not be called a security *for public policy reasons*, i.e. because Bitcoin and Ethereum are "Controlled by China". 😂😂https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
— Vitalik.eth (@VitalikButerin) December 22, 2020
The Ether co-founder said that XRP “lost its footing” from regulatory overreach when it claimed the two networks were too closely linked to China. Deaton quoted Buterin’s post, arguing that for those fighting crypto tribalism, his comments were “demoralizing.”
The Ripple/XRP team seems to be descending to new levels of weirdness. They claim that their cryptocurrency should not be called a security *for public policy reasons*, i.e. because Bitcoin and Ethereum are "Controlled by China". 😂😂https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
— Vitalik.eth (@VitalikButerin) December 22, 2020
In another social media post, he pointed out that many of those contributing to the vitriol are not the ones at risk. Founders and CEOs of cryptocurrency companies, according to the Republican lawyer, are often well-protected financially, while ordinary investors are the ones who bear the brunt of market volatility.
“I will never say names, but some very important leaders in the cryptocurrency community have told me privately that they cannot or will not say anything publicly but support exposing the truth.”
“Infighting” within the crypto community
According to one US veteran, the return of crypto tribalism is especially evident in times of market growth, as the success of one digital asset often leads to jealousy and resentment among holders of other assets.
On January 17 mailIn the wake of widespread rumors that XRP would be part of a cryptocurrency reserve proposed by President Trump’s government, Deaton called on journalists to make unsubstantiated claims pitting one cryptocurrency against another.
“XRP is always a prime target, as are other projects, including Bitcoin,” he continued.
This kind of sentiment, according to Deaton, stems from people’s frustration that their tokens have yet to see a price increase while the prices of other coins are rising.
Deaton urges the industry to move away from the “my coin goes up, your coin goes down” mentality, as it only hinders the collective progress the cryptocurrency industry has made and leads to unnecessary division.
