John Deaton, a prominent voice in the cryptocurrency space, has made his position clear in his run for the United States Senate seat in Massachusetts.
In an interview with Generation Infinity, Deaton discussed his opposition to a US Federal Reserve-issued central bank digital currency (CBDC) and his broader focus on regulatory clarity and government accountability.
“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.”
Opposition to a federal CBDC
In the interview, Deaton alleged that a federal CBDC could replace cash and allow the government to monitor and potentially restrict how individuals spend their money.
He referenced Senator Elizabeth Warren’s support for a CBDC, arguing that it could limit the use of crypto assets like Bitcoin
“Senator Warren introduced her bill, that’s a de facto ban on Bitcoin and self-custody of crypto in the United States […] She proposed a Federal Reserve-issued CBDC that really could replace cash.”
Accountability concerns
In the interview, the pro-crypto attorney addressed government accountability and fiscal responsibility, expressing his support for term limits for senators and representatives.
He argued that long-term incumbency contributes to a lack of fresh ideas and accountability in Washington and criticized the practice of former regulators quickly moving to private sector roles:
“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.”
Deaton calls for regulator clarity
In addition to his opposition to a federal CBDC, Deaton was vocal about the necessity for clear regulations in the crypto industry, highlighting the approach of the US Securities and Exchange Commission:
“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.”
The Senate candidate argued that a lack of regulatory clarity had led some innovators and companies to avoid the US market altogether, stating that some entrepreneurs decided to “exclude the US market” in the last five years.
