John E. Deaton, a prominent figure in the crypto domain, has voiced skepticism on the near-future prospects of cryptocurrency legislation in the U.S. This comes in response to a detailed thread by Ron Hammond, director of government relations at the Blockchain association, who delved into the challenges that crypto legislation currently grapples with.
Excellent 🧵 explaining in substantive ways what I’ve maintained for the last year: we will not see meaningful legislation until the second half of 2025. We will be forced to continue to fight the SEC, CFTC, FED, etc. In fact, @ewarren and @GaryGensler will NOT allow the truth to… https://t.co/rR4MZ2wmZT
— John E Deaton (@JohnEDeaton1) October 10, 2023
Hammond highlighted the prevailing instability within the House, marked by the ongoing Speaker’s race, with contenders like Rep. Scalise and Rep. Jordan emerging as potential candidates. As this power tussle ensues, figures such as Rep. Patrick McHenry, known for his pro-crypto advocacy, are temporarily filling leadership voids, according to Hammond.
Further, Hammond drew attention to international dynamics that might influence crypto decisions. He specifically highlighted the Israel conflict, examining how geopolitical events could cast ripples across the crypto landscape. Hammond drew attention to the interaction of entities such as Hamas with cryptocurrency, the emergence of humanitarian initiatives like “Crypto Aid Israel,” and the efforts by law enforcement to track and confiscate crypto assets linked to specific groups.
Reacting to Hammond’s elucidations, Deaton extended the projected timeline for achieving meaningful crypto legislation. He anticipates potential delays stretching into the latter half of 2025. Regulatory challenges, with bodies like the SEC, CFTC, and the FED at the helm, were cited as significant contributors to this extended timeline.
Additionally, Deaton did not shy away from pointing fingers at specific regulatory personas. He directed attention towards U.S. Senator Elizabeth Warren and SEC Chair Gary Gensler, suggesting a possibility that these political figures are using global crises, such as terrorism or wars, as grounds to intensify their scrutiny on the crypto space.
Deaton further noted the “hostile” activities against crypto donors, citing instances like the decision of entities such as Hamas to halt crypto donations. He expressed concerns that the Congress perception may skew towards viewing crypto as primarily a tool for “illicit activities,” hinting at potential calls for regulations similar to past proposals by figures like Senator Warren.
Despite his apprehensions, Deaton emphasized a willingness to be challenged on his views. He openly invited counterpoints and expressed hope to be proven wrong in his predictions. Especially he welcomed inputs from those deeply engaged in legislative activities on Capitol Hill.
