Pro-XRP lawyer John Deaton has criticized the U.S. Securities and Exchange Commission (US SEC) for relying on laws established in 1933 to regulate emerging technologies like blockchain, artificial intelligence, and robotics. Deaton emphasized the need for reform, stating that the current legal framework does not account for the real-time availability of information brought by the internet and technological advancements.
John Deaton Calls for Modernized US SEC Rules to Address Blockchain Technologies
Reacting to a recent Michael Saylor interview, Pro-XRP lawyer John Deaton expressed concerns over the outdated regulatory framework applied by the US SEC to modern technologies. Deaton noted that the existing disclosure laws, which date back nearly a century, were designed to address asymmetries in investment information. He emphasized that this was during a time when technologies like the internet did not exist.
Deaton highlighted the challenges faced by blockchain companies due to these antiquated crypto regulations. He argued that the US SEC should focus on clear and straightforward principles to guide the industry. Reiterating Michael Saylor’s views, Deaton added,
“It’s so damn simple, Just don’t lie, cheat or steal.”
According to John Deaton, modern investors, including retail participants, already have access to real-time information, reducing the need for the cumbersome disclosure rules initially implemented in 1933.
More so, Deaton notified his followers on X that he would discuss what’s at stake as Trump picks the next SEC chair today at 3 PM EST on Crypto Law US.
Reformers To Modernize SEC’s Approach
Adding to his arguments, John Deaton called for reformers like Brian Brooks to lead efforts in modernizing the regulatory framework. Deaton criticized current and former officials for preferring vague regulations that allow for selective enforcement.
The Pro-XRP lawyer stated,
“People like Gary Gensler, Jay Clayton, and Bob Stebbins prefer the law and rules of the road to be VAGUE. We need reformers as regulators like Brian Brooks and Brad Bondi.”
Deaton’s remarks emphasized the need for an updated framework that accommodates emerging technologies. He argued that adopting a clearer and innovation-oriented regulatory strategy would enable the growth of digital assets.
In a recent report, the Pro-XRP lawyer publicly endorsed Brad Bondi as a suitable candidate to replace current Chair Gary Gensler, whose resignation has been speculated. Deaton pointed out that Bondi represents a more balanced and progressive approach to regulatory oversight. Deaton expressed skepticism over other contenders, such as Bob Stebbins.
Moreover, Ripple CEO Brad Garlinghouse also weighed in on the discussion, voicing concerns over Bob Stebbins’ candidacy. Garlinghouse criticized Stebbins for his role in past regulatory actions. These includes the Ripple lawsuit and the controversial classification of Ethereum as a non-security while ignoring other blockchain projects.
Garlinghouse called for a fairer regulatory approach, warning that appointing Stebbins could result in a continuation of enforcement-focused policies. Echoing John Deaton’s sentiments, he advocated for leadership that prioritizes transparency and clarity in regulations to support the blockchain industry.
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