Renowned pro-crypto attorney John E Deaton has issued a stark warning that has sent ripples of concern throughout the cryptocurrency community. Deaton has cautioned that if the U.S. Congress does not swiftly pass the GENIUS Act, it could delay the implementation of robust crypto laws and reforms until as late as 2029.
While this may seem like an extreme scenario, Deaton is not alone in his apprehensions. Ryan Selkis, the founder of Messari, has echoed similar sentiments, emphasizing that without immediate progress, any long-term reforms may be postponed indefinitely.
GENIUS Act: More Than Just a Crypto Bill
Deaton asserts that the GENIUS Act is a crucial piece of legislation that all politicians should rally behind. He argues that it transcends being merely a “crypto” bill, with Alex Thorn from Galaxy Research suggesting it should be dubbed the “Dollar Dominance Bill.”
Aligned with Selkis, Deaton warns that failure to pass the GENIUS Act promptly could spell doom for even basic crypto regulations in the foreseeable future, particularly under a potential future Trump administration.
Furthermore, the bill aims to bolster stablecoins pegged to the U.S. dollar. In a global landscape where nations like China and Russia are advocating for “de-dollarization,” Deaton emphasizes the urgency for the U.S. to take decisive action.
The adoption of dollar-backed stablecoins could drive demand for U.S. Treasury assets and help sustain the dollar’s status as the world’s primary reserve currency.
Broken System of Political Swings
Expressing his frustration, Deaton criticizes the inconsistent approach of the U.S. government towards crypto, swinging between stringent regulations and overly friendly gestures, sometimes trivializing crypto for political gain.
Regardless of the administration in power, Deaton highlights the inadequacy of using outdated laws from the 1930s and 1940s to govern cutting-edge technologies like crypto and AI.
No Reform Without Action
Undoubtedly, the overarching concern is crystal clear as Deaton underscores the imperative need for bipartisan backing of the GENIUS Act without delay. Selkis warns that the failure to pass the bill promptly could stifle any prospects of significant market structure reforms in the future, especially under a Trump-led government.
Deaton concurs and also points out Coinbase’s strategic silence, speculating that regulatory ambiguity might serve as a tactical advantage for the platform to maintain a competitive edge.