Crypto Regulation: John Deaton Lays Out 5 To-Do List for Congress

by

Ah, John Deaton, a crypto lawyer whose ideas are as sharp as a tack and almost as fast as a blockchain transaction. In his latest musings on the mysterious world of digital coins, he’s presented Congress with a five-step guide to get their act together—before the entire crypto market collapses under the weight of indecision and bureaucracy. According to Deaton, lawmakers need to stop squabbling and get on with making clear rules that protect users, encourage innovation, and bring some stability to this chaotic, ever-shifting landscape.

John Deaton’s Five Crypto Regulation Priorities (Because Congress Needs a To-Do List, Apparently)

Deaton kicks things off with a proposal so simple it almost sounds too easy: pass a law on stablecoins. He’s convinced that this will not only make the U.S. Treasuries more in-demand but will also reduce the headache that is international money transfers. Because, really, who doesn’t love sending money overseas without the hassle of waiting a lifetime or paying extortionate fees? This plan, he believes, could catapult the U.S. to the front of the global trade queue—unless Congress messes it up, of course.

Then, Deaton pulls out his magnifying glass and looks at the classification of tokens. He wants the U.S. Congress to clarify which tokens are securities and which are commodities, because apparently, the SEC and CFTC are still throwing jabs at each other like two over-caffeinated squirrels. Defining these terms clearly could help end the regulatory tug-of-war. Because when regulators bicker, startups suffer, and who wants that?

Next up, he tackles the wild world of crypto exchanges. Deaton proposes that exchanges be forced to keep customer funds separate from company funds—what a concept, right? No more mixing other people’s money with yours, which, as it turns out, is a surprisingly good idea. He even suggests that exchanges should hold reserves visible on the blockchain. This would be like putting a security camera on your cookie jar—except instead of cookies, it’s billions of dollars in crypto. Easy to keep an eye on, no?

Then there’s the issue of taxes—because, let’s face it, everyone loves taxes as much as they love a surprise audit. Deaton proposes eliminating the capital gains tax on small crypto payments. So, if you’re using your crypto to buy your lunch, you won’t get hit with an extra tax bill just because you thought it’d be cool to pay in Bitcoin. He also suggests letting people pay federal taxes in crypto, without the added layer of taxation—because, who needs more layers when they’re already drowning in them?

Finally, Deaton gets to the Accredited Investor Rule. According to him, this rule is essentially a velvet rope at the club, keeping too many people out of early investment opportunities. His message to Congress: do something about it before 2026, because we all know how legislative timelines tend to go. If they don’t act soon, they’ll find themselves tangled in the midterm elections mess, and we all know how well that goes.

Stablecoin Laws: Coming Soon (Maybe)

Oh, but wait! It gets even better. Deaton’s words aren’t just idle chatter. He’s backing up his ideas with the GENIUS Act, which is already being discussed in Congress. No, it’s not the name of a new superhero movie (though, to be fair, it could be). The bill proposes that the Federal Reserve manage large banks issuing stablecoins, while state regulators would handle the smaller players. Sounds like the government is finally starting to think about crypto like a real thing. Well, better late than never, right?

At last count, the global stablecoin market was worth a cool $234 billion. So, there’s that little tidbit. Now, if Congress could just pull its socks up and make some rules before Q2, we could see stablecoin regulations hitting the scene faster than you can say “blockchain.” Fingers crossed, folks!

SEC’s Shifting Position on Oversight: The Plot Thickens

And just when you thought things couldn’t get any more fun, the SEC—formerly the crypto regulation villain—is softening its stance. Turns out, they’re now willing to play nice with the CFTC. CoinGape, in its infinite wisdom, has pointed out that the era of counterproductive oversight may be coming to an end. Hallelujah!

For years, the SEC treated crypto like a dangerous animal—something that needed to be watched, poked, and prodded at every turn. Meanwhile, the CFTC took a more laissez-faire approach, kind of like the aunt who lets you have candy for breakfast. But with recent laws like FIT21, the CFTC might get more control over decentralized assets. So, maybe, just maybe, we’re heading toward some regulatory harmony.

With both regulators now singing Kumbaya under the leadership of Paul Atkins, there’s a glimmer of hope that crypto regulation will finally make sense. The goal? To reduce uncertainty, make the rules clearer, and hopefully, stop crypto from being treated like the wild west.

Read More

2025-04-19 23:38