According to John E. Deaton, the regulations governing cryptocurrency will be simplified as a result of the SEC-CFTC merger.
John E. Deaton, a vocal advocate for cryptocurrency, has acknowledged the necessity of merging the Securities and Exchange Commission (SEC) with the Commodity Futures Trading Commission (CFTC) in order to streamline cryptocurrency regulations. The topic of regulating the crypto market has garnered significant attention in the United States, with both advocates and experts expressing their perspectives.
Nevertheless, Deaton believes that the most effective approach to ensuring effective regulations is to combine the SEC and CFTC into a single entity. He has previously criticized Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), whom he refers to as a “Bad Faith Regulator.”
Gensler’s unwarranted legal actions against crypto firms such as Ripple and Coinbase and his oppressive crypto regulations were the reasons for this. Deaton expressed his perspective in response to a post on X in which Digital Chamber CEO Perianne Boring was discussing the potential benefits of Trump’s crypto vision for the United States’ regulatory clarity.
Boring discussed the disarray and conflicts that the financial markets experience as a result of having two distinct regulators supervise their operations during the morning program with Maria.
In a post on X, Deaton concurred with Boring, emphasizing the perplexity and inefficiency that it induces in the agencies. He stated that the merger of the two regulators would resolve the conflicts and overlapping responsibilities that have arisen in the past. Firms would also find it simpler to adhere to the regulations.
Deaton also stated that the move will assist the agencies in establishing a consistent and uncomplicated approach to the regulation of commodities such as Bitcoin and other assets, as well as securities such as equities.
He maintains that the United States should eliminate the grey areas in the financial market, and the establishment of a single regulator would facilitate this process. He stated, “This would facilitate compliance for market participants, particularly as financial products continue to muddle the distinction between securities and commodities.”
Additionally, John E. Deaton underscored the necessity for the United States to enhance its regulatory clarity, emphasizing the competitive nature of the global crypto market.
In the interim, the newly constituted Department of Government Efficiency (D.O.G.E.) could serve as the spokesperson and advocate for the much-needed merger, according to Elon Musk and Vivek Ramaswamy. In addition to the merger’s potential to reduce costs by reducing the funds allocated to the country, it could also provide plain and precise regulations in the market.
The new merger would also guarantee a new era in the country for both crypto investors and firms. The crypto sector is already experiencing optimism in the country as the new administration prepares to replace the departing Gary Gensler as SEC Chair with the pro-crypto Paul Atkins. The inclusion of the merger of these two organizations would only serve to reinforce that optimism, thereby benefiting the industry in the long term.
John E. Deaton also addressed the payment sector, recognizing that it is an additional area that requires improvement. He emphasized the presence of over a dozen federal agencies that supervise the payment sector.
These agencies would be streamlined to attain greater efficacy through the implementation of a unified regulatory framework, which would result in a unified agency. He cited XRP as an example, observing that the FinCEN classified it as a virtual currency in 2015, only for the SEC to declare it a security years later.
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