Attorney Deaton commended Terrett for releasing the memo.
Attorney John E. Deaton, the founder of CryptoLaw and pro-XRP lawyer, has applauded Fox Business journalist Eleanor Terrett for releasing a document highlighting plans for a widespread crypto crackdown in the United States.
In a tweet yesterday, Deaton joined Fox Business Senior Correspondent Charles Gasparino to refer to Terrett as “crypto kid,” following her efforts in revealing Democrat’s negative stance against the nascent asset.
Deaton also commended Gasparino for making moves to ensure Terrett gets the credit she deserves.
— John E Deaton (@JohnEDeaton1) May 14, 2023
Push for Stringent Crypto Policy
Yesterday, the crypto community was in shock after Terrett leaked a memo sent to members of the United States Democratic House financial services committee ahead of Wednesday’s joint hearing on crypto policy.
The memo directs Democrat lawmakers to adhere to instructions that would see all crypto assets classified as securities.
According to the memo, Democrat lawmakers were asked to counter Republicans’ claim of providing clarity to the market and creating an avenue for the Commodity Futures Trading Commission (CFTC) to participate in crypto regulation.
The memo noted that these claims show that Republican lawmakers are not focused on protecting United States consumers and investors.
It is clear Democrat lawmakers are skeptical about the possibility of crypto assets complying with existing rules, as seen in the memo.
“The problem isn’t ambiguity—it’s mass non-compliance with existing laws. We can’t invent new accommodating regulatory structures simply because crypto companies refuse to follow clear rules of the road,” an excerpt from the memo published by Forbes read.
Democrat Lawmakers Pick SEC as Suitable Crypto Regulator
The United States is lagging behind most nations in terms of establishing clear crypto rules. Countries like the United Arab Emirates, United Kingdom, etc., have been at the forefront of establishing clear crypto guidelines.
Last year, President Joe Biden issued an executive order directing all federal agencies to come up with a suitable response to the crypto boom.
This prompted the SEC to tout itself as the appropriate crypto regulator while sidelining the CFTC. SEC’s chairman Gary Gensler also claimed that all crypto assets except Bitcoin are securities to achieve this goal.
The memo leaked by Terrett also shows how Democrat lawmakers were being cajoled into backing the SEC to become the main crypto regulator.
“Both the SEC and CFTC are aligned on the fact that the SEC is the regulator to determine if crypto assets are securities, and the SEC has made clear that nearly all crypto assets are securities,” the memo read.
However, most crypto stakeholders, like Ripple CEO Brad Garlinghouse, don’t think the SEC is the appropriate regulator for crypto due to its adverse enforcement actions against the emerging market.
Despite the widespread scrutiny the SEC has received from top crypto stakeholders, the memo still insists that the agency “must continue to lead the regulation of the US crypto market.”
It remains to be seen whether Democrat lawmakers will stick to the memo’s directive in an upcoming joint hearing scheduled for Wednesday.