Facing The Ugly Truth: Pro-XRP Lawyer Reveals The Biggest Threat To Crypto

Pro-XRP legal John Deaton recently voiced his concerns about someone he revealed as the biggest threat to crypto in the US. This time around, it wasn’t Gary Gensler he was referring to, as he noted that the SEC Chair answers to this person. 

Warren The “Biggest Threat” To Crypto In The US

In a post shared on his X (formerly Twitter) platform, Deaton labeled Senator Elizabeth Warren as the “single biggest threat to Crypto in the United States.” He noted that Gensler can’t take these honors considering that he takes his marching orders from her. Warren, known for her firm stance on cryptocurrencies, recently reintroduced the ‘Digital Asset Anti-Money Laundering Act.’ 

Deaton’s comment was in response to another X post by lawyer Joe Carlasare, who had stated that Warren’s bill “probably had the best chance” of being passed among any crypto bill. In response, Deaton stated that the bill is “a big deal.”

According to a recent press release, the bill is now co-sponsored by more than nine US Senators, including Republicans and Independents. It is indeed true that the bill is bipartisan as it has the support of Senators Roger Marshall (a Republican representing Kansas) and Angus King (an Independent representing Maine). However, it remains to be how much support she can garner from other Senators. 

The bill, if passed, is said will mitigate the illicit finance risks that crypto poses by eliminating loopholes and ensuring that the industry is in greater compliance with existing money laundering frameworks. However, considering Warren’s ‘aversion’ to cryptocurrencies, many believe that this bill wasn’t introduced with the best of intentions. 

Those against the bill will take consolation from the fact that only one out of the 330 bills Warren has sponsored has managed to get enacted. 

Total market cap falls to $1.5 trillion | Source: Crypto Total Market Cap on Tradingview.com

Warren’s Bill Is An “Unconstitutional Assault” On The Industy

Coin Center, a leading non-profit focused on policy issues facing cryptocurrencies, had previously shared its thoughts on the Digital Asset Anti-Money Laundering Act. In a publication dated December 14, 2022, Coin Center labeled the proposed Act as an “opportunistic, unconstitutional assault” on digital assets and stakeholders in the industry. 

They further noted that this legislation would in no way prevent the next FTX. Instead, it would only put users at more risk in their opinion. One of the highlights of the bill is the fact that it will subject decentralized crypto products and stakeholders like miners to Know Your Customer (KYC) rules. 

Alex Thorn, Head of Firmwide Research at Galaxy Digital, was among those who recently criticized the bill. In an X post, he noted that it was almost impossible for the Act to achieve its intended purpose as “non-custodial and decentralized software cannot plausibly perform centralized compliance functions.” Instead, the only thing the bill will achieve is to outlaw crypto in America. 

Featured image from IndiaTimes, chart from Tradingview.com