Prominent figures in the cryptocurrency industry warn against a potential return to contentious regulatory policies. Pro-XRP attorney John Deaton agreed with Ripple CEO Brad Garlinghouse that the U.S. cannot afford another regulatory approach similar to former SEC Chair Gary Gensler’s. Both argue that without concrete legislation, recent regulatory clarity could be reversed, pushing innovation offshore.
Pro-XRP attorney John Deaton has concurred with recent remarks by Ripple CEO Brad Garlinghouse that the United States cannot afford another regulatory approach akin to former SEC Chair Gary Gensler‘s. “Both Deaton and Garlinghouse agree that another Gensler experience could lead to further weaponization of crypto policy in the U.S.,” according to their shared perspective.
Deaton insisted that all recent regulatory guidance could be undone by a new administration. He believes passing crypto-friendly legislation is the only way to guarantee this does not occur.
Garlinghouse previously warned against the weaponization of crypto policy during a television interview. He stated the Biden administration’s regulatory war never made sense to him, likening it to waging war on emails.
Instead of thoughtful rule-making, agencies like the SEC initiated lawsuits, which Garlinghouse described as “lawfare.” This approach prompted many crypto companies to move their operations offshore. The Ripple CEO argued the U.S. must create an environment favorable to innovation.
The recent administration has reportedly improved clarity, with the SEC clarifying two weeks ago that most crypto assets are not securities. Garlinghouse insists more must be done, specifically codifying bills like the Digital Asset Market Clarity Act into law. He sees this legislation potentially being enacted within 30 days of his initial prediction.
Backing this opinion, Deaton noted the CLARITY Act could unlock institutional participation. He also expressed caution, viewing large financial institutions as potential predators due to their political influence. “Look how those career politicians protected the banks over yield related to stablecoins in the Clarity Act,” the lawyer stated.
Nevertheless, Deaton argued the threat of another Gensler-style chair should force a deal to codify the CLARITY Act promptly. Both figures emphasize that legislative action is crucial to solidify current regulatory progress and prevent future policy shifts.
