John Deaton Raises Concerns Over Security Status of Bitcoin, Ethereum, and XRP in Light of Recent Crypto Regulations

Amidst a fiery start to the week, the cryptocurrency industry is abuzz with discussions surrounding the risks associated with crypto and the urgent need for regulatory measures. Joining the conversation is John E. Deaton, a staunch supporter of XRP, who is voicing his opinions on the need for new crypto laws. This comes as Treasury Secretary Janet Yellen lends her support to the idea. Deaton argues that Bitcoin, Ethereum, and XRP should not be classified as securities, and he provides his reasoning behind this stance.

John Deaton Sparks Controversy on Securities
In response to Janet Yellen’s renewed push for crypto legislation in the United States, Deaton is defending Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP against claims of being securities.
Deaton highlights recent developments, such as the approval of spot Bitcoin ETFs by the SEC, as evidence of Bitcoin’s legitimacy. Similarly, the approval of futures ETFs for Ethereum and BlackRock’s application for a spot Ethereum ETF indicate that Ethereum should not be considered a security. Deaton also argues that Judge Analisa Torres’s ruling that XRP offered to retail investors is not a security further solidifies XRP’s position.
With BTC, ETH, and XRP cleared of their security status, all eyes are now on the Coinbase lawsuit with the SEC, as its outcome could have a significant impact on future crypto legislation.
However, Yellen’s focus is on the larger crypto risks, as she previously likened the FTX case to the Lehman Brothers crisis. She has urged Congress to enforce existing regulations and introduce new legislation to regulate stablecoins and non-security crypto assets.
EU Takes the Lead in Establishing Clear Rules Ahead of the US
Meanwhile, the European Union (EU) is taking steps to implement clear crypto regulations. The European Securities and Markets Authority (ESMA) has released consultation papers seeking public feedback on standards and guidelines under the Markets in Crypto-Assets (MiCA) regulation. This proactive move aims to establish stricter rules for foreign crypto firms operating within the EU.
Questioning the SEC’s New Rulebook
Janet Yellen’s comments on Tuesday have also led to another development. The SEC has drafted a 247-page rulebook to ensure the safety of crypto investors, with a particular focus on DeFi and liquidity providers. These rules require individuals involved in crypto transactions to adhere to federal laws in order to protect investors.
However, members of the crypto community are dissatisfied, as they believe these rules do not align well with DeFi and may hinder the growth of new ideas. Commissioner Hester Peirce has raised concerns about whether these rules can effectively govern entities such as automated market makers (AMMs). Overall, there is a heated debate surrounding how to strike a balance between ensuring the safety of the crypto industry and fostering innovation.
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Crypto Regulations