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John Deaton is dead set against a federal central bank digital currency (CBDC) by the U.S. Federal Reserve.
The pro-crypto attorney is currently running for the Senate in Massachusetts and has vowed to oppose any move that gives the government power to control people’s spending habits. In his own words:
“If there’s a CBDC that’s used by the government to reduce friction with the banking system or something like that, that’s one thing. But a consumer-issued CBDC by the Federal Reserve? No, that’s a hill I’m willing to die on to oppose.”
Federal CBDC and government control
Deaton warned that the CBDC could be used to replace cash, giving the government the ability to track and potentially control every financial move of citizens.
He was quick to call out Elizabeth Warren for supporting the idea. Deaton believes she would wipe out Bitcoin and other digital assets. He said:
“Senator Warren introduced her bill, that’s a de facto ban on Bitcoin and self-custody of crypto in the United State. She proposed a Federal Reserve-issued CBDC that really could replace cash.”
Deaton’s also taking a stand for accountability in Washington.
He has openly criticized long-term politicians and how they work, pushing for term limits for senators and representatives to bring fresh perspectives into government.
He believes Washington’s lack of accountability comes from “entrenched power and revolving-door politics.”
“You shouldn’t be allowed to be the SEC chairman on Friday, and on Monday, you’re Apollo Group’s adviser. There should be a three to five statutory gap from being a regulator and then going into a job in that industry.”
Crypto regulation and Deaton’s beef with the SEC
Deaton’s also been equally vocal about the need for clear crypto regulations. He says he’s a firm believer that regulatory uncertainty is driving innovation out of America.
He pointed to how most crypto companies are currently forced to operate outside of the country because of unclear rules.
“When I took on the SEC, on behalf of XRP holders, what I said from the very first writ of mandamus was just say that XRP itself isn’t a security. That’s all you’ve got to do, which is follow the law of 75 years.”
Deaton became famous in the crypto community for his legal work related to the infamous Ripple-SEC case. He first filed a petition to intervene in 2021.
The SEC had classified XRP as a security, and Deaton stepped in, arguing that the SEC’s move was not just wrong but could cause huge losses for retail investors holding XRP.
This brought him recognition as a defender of XRP holders.
Deaton estimates that the SEC’s aggressive approach to regulating the crypto market has cost retail investors around $15 billion.
He’s a pro-crypto candidate through and through, securing about 65% of the vote in the Republican primary against his opponents, Robert Antonellis and Ian Cain.
He’s also put his money where his mouth is. Deaton disclosed that 82% of his net worth is in Bitcoin.
Nermeen Nabil Khear