John Deaton, a prominent lawyer known for his advocacy on behalf of cryptocurrency holders, has publicly volunteered to testify at an upcoming congressional hearing on digital assets.
Deaton, who is known for representing over 75,000 XRP holders as amicus counsel in the Ripple case, and his involvement in the LBRY.com case, expressed his willingness to participate in a new congressional hearing.
This hearing is scheduled for Jan. 10 by the Digital Assets, Financial Technology, and Inclusion Subcommittee of the House Financial Services Committee.
The advice for crypto holders
Deaton’s offer to testify stems from his extensive experience in legal battles involving cryptocurrencies.
In his post on the X social media, he emphasized his unique position in representing the interests of individual token holders, as opposed to crypto companies.
Deaton’s tweet explicitly criticized SEC Chairman Gary Gensler’s approach to investor protection and pointed to the paradox in the SEC’s actions against Coinbase.
His outspoken stance mirrors a growing sentiment among crypto enthusiasts and investors, who feel their interests are often sidelined in regulatory discussions.
The importance of the upcoming hearing
The hearing will focus on the Financial Stability Oversight Council’s (FSOC) changing designation framework on innovation.
Recently, the FSOC has reiterated the need for Congress to enact legislation addressing risks associated with cryptocurrencies, emphasizing the necessity of defining and regulating crypto spot markets and stablecoins. The Council’s latest report highlights ongoing concerns about vulnerabilities in the crypto market, including price volatility, high leverage, and cybersecurity risks.
This framework is critical in determining how financial institutions, including those in the crypto sector, are regulated.
The hearing aims to shed light on the implications of these regulatory changes for innovation in the digital asset space.
With the inclusion of voices like Deaton’s, the hearing could provide a more holistic view of the impacts of regulation on various stakeholders within the cryptocurrency ecosystem.