Pro XRP Lawyer John Deaton Slams Warren's Crypto War as Wall Street Doubles Down on Crypto

Morgan Stanley has filed for a spot Bitcoin ETF and expanded its crypto exposure with filings for Ethereum and Solana trusts. The moves signal a strategic shift toward in-house digital asset products. The firm joined other major players like BlackRock and Fidelity in offering direct crypto access to clients according to CoinCentral.

John Deaton, a pro-XRP lawyer, criticized Senator Elizabeth Warren for her anti-crypto stance. He argued that Wall Street's growing involvement in crypto has weakened the opposition. Deaton noted that even JPMorgan CEO Jamie Dimon might soon acknowledge crypto's staying power.

The Clarity Act, which seeks to provide a formal regulatory framework for crypto, is gaining traction in Congress. This legislative push is viewed as crucial for institutional adoption. Clear legal guidelines help firms deploy capital with confidence.

Why Did This Happen?

Morgan Stanley's ETF filings reflect a broader trend among traditional financial institutions. These firms are integrating crypto into their product offerings through regulated vehicles. This strategy provides clients with exposure to digital assets while keeping management fees in-house.

The firm began allowing advisors to recommend crypto ETFs in October 2024. This marked a shift from previous caution. By managing its own ETFs, Morgan Stanley aims to retain revenue and offer more tailored investment options.

Institutional interest in crypto has been growing steadily. The U.S. spot Bitcoin ETF market has attracted over $120 billion in assets. Even with recent outflows, the overall trend shows increased adoption.

How Did Markets React?

Bitcoin traded around $90,627 as of January 10, 2026. The price had hit a high of $126,198 in October 2025. Despite the decline, ETF inflows for Bitcoin and other major coins remained strong. Recent inflows for Ethereum and Solana also indicated continued demand.

Market analysts noted mixed signals from ETF flows. While some funds saw outflows, others recorded substantial inflows. This suggests a shift from rapid allocation to more measured portfolio rebalancing. The ETF landscape is becoming more competitive as firms vie for client assets.

Whales and new investors have also shown interest in Ethereum. Whale activity has increased, with $4.83 million in spot Ethereum purchases. Smart money traders, however, have sold $8.9 million in the same period. New wallet creation has added $2.34 billion in Ethereum holdings.

What Are Analysts Watching Next?

Political developments could significantly impact the pace of crypto adoption. The upcoming midterms might determine whether pro-crypto policies move forward. Republican control of key legislative bodies has supported regulatory clarity, but a Democratic House could slow progress.

The Trump administration's push for a national bank charter and stablecoin initiatives adds another layer of uncertainty. These plans depend on the political outcomes of the midterms. Analysts are closely watching how the political landscape evolves.

Institutional investors are also watching how ETF performance aligns with broader market trends. If inflows continue to rise, it could signal broader market acceptance. Conversely, persistent outflows may indicate a shift in investor sentiment.

John Deaton's comments highlight the ongoing debate over crypto's future. He believes that institutional adoption will ultimately neutralize anti-crypto efforts. His stance is supported by recent moves of major financial institutions.

Morgan Stanley's expansion into crypto ETFs could influence other banks to follow suit. The firm's wealth management arm gives it a unique position to target high-net-worth investors. This approach could shape the future of digital asset adoption in institutional portfolios.

The Clarity Act remains a key legislative milestone. If passed, it would provide the legal certainty needed for widespread institutional adoption. The upcoming Senate vote on January 15 is a critical moment for the industry.

Market analysts are also watching the performance of existing ETFs. Strong inflows indicate sustained demand, while outflows may suggest a cooling of investor enthusiasm. The balance between these factors will determine the next phase of crypto adoption.

Political uncertainty adds risk to the broader adoption timeline. While current policies support crypto growth, a shift in leadership could introduce new challenges. Investors are advised to monitor political developments closely as they could impact regulatory outcomes and market conditions.