Why Is John Deaton Standing Against Federal CBDC in His Senate Run?

John Deaton, a dominating name in the crypto industry and a Senate candidate in Massachusetts, has reportedly made his opposing stance clear to a U.S. Federal Reserve central bank digital currency (CBDC). Sources state that in an interview with Generation Infinity, Deaton expressed his ideas on federal CBDCs, regulatory clarity, and the need for more 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,” he said.

Building a Stance Against Federal CBDC

John Deaton stated his views about a federal CBDC in the interview that it has the possibility to replace cash and enable the government to regulate and restrict how people spend their money. His major concern is the projected overreach by the federal government through a federal CBDC.

Deaton added on the issue by saying, stating:

“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.”

By taking a stance against federal CBDC, Deaton is allegedly poising himself as a strong defender of financial privacy and individual rights. He states that a federal CBDC could change how people work with their money, with the government having newfound control over financial transactions.

Concerns About Government Accountability

Along with his strong views against federal CBDC, Deaton also discussed issues linked to government accountability and fiscal responsibility. He announced his backing for term limits for senators and representatives, supposedly indicating that long-term incumbency in government has restricted the flow of ideas and a lack of accountability in Washington.

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Deaton also spoke against regulators seemingly moving towards private sector roles shortly after exiting public office, which he thinks leads to conflicts of interest. He stated:

“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.”

John Deaton also spoke about the importance of regulatory clarity, especially in the crypto market, where he has been an avid spokesperson. He allegedly targeted the U.S. Securities and Exchange Commission (SEC) for its ambiguous standing on cryptocurrencies, including XRP, which caused him to represent XRP holders in legal proceedings against the SEC.

“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,” Deaton explained.

Moreover, Deaton spoke about the adverse effects of the lack of vivid regulations for the crypto market. He said that in the past five years, some entrepreneurs have reportedly chosen to avoid the U.S. market due to regulatory ambiguity. This, he went on, has obstructed innovation and moved the development of blockchain and cryptocurrency technologies outside of the country.

Conclusion

To conclude, John Deaton has strongly developed his stance as an advocate against the expected adoption of a federal CBDC, marketing it as an integral issue that could redefine the future of personal financial rights in the United States. His opposition to a federal CBDC is reportedly due to concerns about government overreach and the potential eradication of individual privacy.

By using his platform to stand against a federal CBDC and advocate for regulatory clarity, Deaton seemingly aspires to impact the future direction of both the cryptocurrency industry and U.S. financial policy. Learn more about the CBDC regulations with TheBITJournal.