John E. Deaton, a strong supporter of the crypto industry, has once again shared his views on the need for better regulation. He has often criticized SEC Chairman Gary Gensler and his approach, which many see as stifling the growth of cryptocurrencies. This time, Deaton highlights a possible solution: merging the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission).
One cryptocurrency, one rule!
On Mornings with Maria, Perianne Boring discussed how having two separate agencies oversee financial markets creates confusion and inefficiency. Deaton agreed, explaining that combining the two agencies into one could clarify overlapping responsibilities and conflicts between them. This would make it easier for companies to follow the rules and provide a consistent approach to regulating both securities (such as stocks) and commodities (such as Bitcoin and other cryptocurrencies).
Deaton believes that since cryptocurrencies often fall into gray areas between securities and commodities, having a unified regulator could simplify things for everyone. It would also align the United States with other countries that have a single financial regulator, making it easier for the United States to remain competitive in global markets.
DOGE and the push for consolidation
Additionally, Elon Musk and Vivek Ramaswamy, both Dogecoin (DOGE) supporters, are emerging as potential proponents of the SEC and CFTC merger. This proposed merger could simplify regulations for new technologies like cryptocurrencies, providing much-needed clarity to investors and businesses navigating today’s complex regulatory landscape.
John E. Deaton also highlighted payments as another area where consolidation is urgently needed. He noted that more than a dozen federal agencies, including the Federal Reserve, FinCEN and the SEC, are involved in regulating payment systems. A unified regulatory framework could streamline these processes.
Deaton used XRP as a prime example of regulatory discord. Despite being classified as a virtual currency by FinCEN in 2015, the SEC declared it a security five years later, causing huge losses to investors.
Joining forces for crypto clarity
US Congressman John Rose introduced a bill on September 12 to foster collaboration between the SEC and CFTC through a Joint Advisory Committee on Digital Assets. As part of the “Bridge Regulation and Innovation for Digital, Global and Electronic Assets Act,” the committee would include industry experts, users and academics to guide agencies on harmonizing laws, measuring digital assets and Using blockchain for efficiency and consumer protection.
The committee, with at least 20 non-government members and one representative from the SEC and one representative from the CFTC, would meet twice a year, with two-year terms. Its recommendations would require public responses from agencies, ensuring accountability.
Rose, a strong cryptocurrency advocate, aims to replace “regulation by enforcement” with a cooperative framework that encourages American innovation. His pro-cryptocurrency stance includes supporting the FIT21 Act and opposing excessive government control over digital assets.
