Deaton does not see any rational cryptocurrency regulations passed anytime soon.
XRP community attorney John Deaton has made a statement about cryptocurrency regulations in the United States. In a tweet yesterday, attorney Deaton said he does not see the U.S. Congress passing any sensible cryptocurrency regulation anytime soon.
Attorney Deaton estimated that the earliest the industry could get a sensible regulation would be in the first half of 2025.
“I believe the 1st or 2nd Quarter of 2025 is likely the earliest it could get done and I may be being overly optimistic with that time estimate,” said Deaton.
Deaton: Legal Battle Is the Only Way to Get Guidance
In the absence of regulatory clarity in the United States, Deaton asserted that the nascent industry can only receive guidance through judicial results from the Securities and Exchange Commission’s “regulation by enforcement policy.”
“In other words, guidance will come by Federal District Court decisions like LBRY, Ripple, and Dragonchain, etc.,” Deaton noted while calling on industry players to unite in the fight against the SEC’s enforcement-only policy.
As part of efforts to fight against the SEC’s enforcement-only policy, Deaton said tech journalist and TV producer Naomi Brockwell chose him to represent her in the LBRY lawsuit. TheCryptoBasic reported last month that attorney Deaton dived into the LBRY lawsuit by requesting permission to file an amicus brief on behalf of Brockwell.
While the court has ruled on LBRY’s summary judgment in favor of the SEC, Deaton said the regulator conceded on record that many holders of LBRY’s native token did not adopt the cryptocurrency for investment purposes.
Yes, the LBRY summary judgment decision has been made and the SEC received a TOTAL VICTORY from the Judge’s ruling.
— John E Deaton (@JohnEDeaton1) January 22, 2023
However, the SEC has refused to provide clarity regarding LBC secondary market transactions despite LBRY CEO Jeremy Kauffman’s request.
“When asked by @jeremykauffman and “STRONGLY ENCOURAGED” BY THE JUDGE to provide clarity regarding secondary transactions of #LBC, the SEC has refused,” Deaton said.
He noted that the presiding judge of the LBRY v. SEC lawsuit uttered the words “secondary market/ transactions” and “clarity” over a dozen times. However, the SEC argued that the secondary market is not included in the case, adding that it is not its duty to provide clarity.
Deaton said the SEC is seeking an injunction that does not distinguish between LBRY, its executives, and users of the platform, with a hearing scheduled on January 30 to discuss the issues.
Deaton Triple Dares Congress to Prove Him Wrong
The founder of Crypto Law said many people have informed him that he is fighting a “losing battle.” While Deaton believes they may have a point, he stressed that fighting these legal brawls with the SEC is important as clarity through legislation will not happen anytime soon.
He further triple dared Congress to prove him wrong.
“People have told me that I’m likely fighting a losing battle. Maybe I am. But what else do we do? We have to fight all of these Court battles because clarity through legislation is NOT coming. Congress, I triple dare you to prove me wrong,” Deaton said.