At the fiery start of the week, the crypto space is juggling with talks of crypto risk and the urgent need to implement crypto rules. XRP supporter John E. Deaton has joined the conversation about new crypto laws, which got a boost from Treasury Secretary Janet Yellen. Deaton thinks Bitcoin, Ethereum, and XRP shouldn’t be labeled as securities, and he’s explaining why.
John Deaton Stirs Debate on Securities
In response to Treasury Secretary Janet Yellen’s renewed push for crypto legislation in the US, Deaton has defended Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP against claims of being securities.
Deaton points to recent developments, such as the approval of spot Bitcoin ETFs by the SEC, as evidence of Bitcoin’s legitimacy. Similarly, Ethereum’s approval for futures ETFs and BlackRock’s application for a spot Ethereum ETF indicate Ethereum’s non-security status. Deaton argues that Judge Analisa Torres’s ruling that XRP offered to retail investors is not security further solidifies XRP’s position.
With BTC, ETH, and XRP cleared of security status, attention turns to the Coinbase lawsuit with the SEC, which could significantly impact future crypto legislation.
However, Yellen’s emphasis is on bigger crypto risk, like she previously claimed that the FTX case is similar to the Lehman brothers crisis. She has urged Congress to enforce existing regulations and pass new legislation to regulate stablecoins and non-security crypto-assets.
EU Steps in to Make Clear Rules ahead of US
Meanwhile, in the EU, is all set to implement clear crypto rules soon. 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. A proactive regulatory step for setting stricter rules for foreign crypto firms operating within the EU.
SEC’s New Rulebook in Question?
Janet Yellen’s comments on Tuesday have also seen one more development. The SEC has made a 247-page rule book to keep crypto investors safe, focusing on DeFi and liquidity providers. These rules mean those involved in crypto transactions have to follow federal laws to protect investors.
But people in the crypto world are unhappy because they think these rules don’t fit well with DeFi and might stop new ideas. Commissioner Hester Peirce is asking if these rules can even work for things like automated market makers (AMMs). Overall, there’s a big debate about how to make sure crypto is safe without stopping new ideas from growing.
