Both Deaton and Garlinghouse agree that another Gensler experience could lead to further weaponization of crypto policy in the U.S.
The pro-XRP attorney John Deaton has concurred with recent remarks by Ripple CEO Brad Garlinghouse that the United States cannot afford another Gary Gensler experience. He was the former chair of the U.S. Securities and Exchange Commission (SEC).
In a tweet explaining his opinion, Deaton insisted that all the guidance and clarity the crypto industry has received so far can be taken away if a new administration takes over. According to the pro-crypto lawyer, the only way to guarantee that this does not happen is to pass crypto-friendly legislation.
Ripple CEO on U.S. Weaponization of Crypto Policy
Deaton’s remarks echo those of Garlinghouse, who, over the weekend, was a guest at a morning Fox Business show anchored by Maria Bartiromo. During the interview, the Ripple executive warned against the weaponization of crypto policy in the United States.
Garlinghouse revealed that the Biden administration’s war on crypto never made sense to him. He likened their approach to regulating the relatively nascent industry to waging war on emails – a move that could significantly affect digital innovation. Instead of regulatory agencies like the SEC engaging in “thoughtful rule-making,” they initiated “lawfare” and just sued crypto companies. In response to the attack, most companies went offshore.
The Ripple CEO believes the U.S. must prevent another Gensler moment to create an environment favorable to innovation, such as blockchain technology, to thrive. So far, the Trump administration has improved clarity regarding digital asset regulation.
Two weeks ago, the SEC clarified that most crypto assets are not securities, while this is a huge step in the right direction, Garlinghouse insists on more. Codifying bills like the Digital Asset Market Clarity Act (the CLARITY Act) into law will help ensure that there is no second Gensler experience. Garlinghouse sees the CLARITY Act being codified by May, 30 days more than his initial prediction.
Deaton Agrees With Garlinghouse
Backing Garlinghouse’s opinions, Deaton added that while the CLARITY Act could unlock a gateway for large financial institutions and banks to lean into the crypto industry, he still sees these entities as predators. This is because banks have “captured career politicians” to do their bidding.
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“Look how those career politicians protected the banks over yield related to stablecoins in the Clarity Act,” the lawyer stated.
Nevertheless, Deaton believes the mere thought of installing another Gensler as SEC chair should force a deal that would lead to the codification of the CLARITY Act as soon as possible.
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