Crypto Lawyer John Deaton Outlines a Five-Point Plan for Regulation by US. Lawmakers

John Deaton, a prominent crypto lawyer, has outlined a five-point plan for regulation by lawmakers in the United States.

Prominent crypto lawyer John Deaton has urged lawmakers in the United States to take immediate action and introduce a five-point plan for crypto regulation.

In his latest post on X, Deaton highlighted the urgent need for Congress to establish clear rules that will support innovation, protect users, and bring stability to the crypto sector.

Deaton’s first recommendation is to pass a law on stablecoins, which he believes can increase demand for U.S. Treasuries and reduce the cost and delay in sending money across borders. This will help the United States play a stronger role in global trade.

"Congress needs to clearly define which tokens are securities & which are commodities, & whether the SEC or CFTC should regulate them. Without this clarity, regulators will continue to clash over control, & projects will be left in limbo," he added.

Further, the crypto lawyer wants to see crypto exchange regulation with strict rules to ensure customer funds are not mixed with company funds. He suggests that exchanges hold full reserves visible on the blockchain. This way, they can avoid high-risk activities like offering large amounts for lending or using customer funds elsewhere.

Moreover, Deaton suggests easing the tax burden by removing the capital gains tax on small crypto payments and allowing people to pay federal taxes in cryptocurrency without facing more taxes.

Lastly, he urges Congress to revise or remove the Accredited Investor Rule, which he believes locks out too many people from early investment opportunities.

"Lawmakers must act on this now, before the 2026 midterm elections, or delays may follow due to political changes," he stated.

Stablecoin Laws May Arrive Very Soon

It is important to add that Deaton’s views support ongoing developments in Congress. A bill known as the GENIUS Act is already being discussed. It suggests that the Federal Reserve would manage large banks issuing stablecoins, while state bodies would handle smaller groups.

According to recent reports, the global market for stablecoins now exceeds $234 billion, raising hopes that new U.S. laws will soon follow.

As mentioned earlier by President Donald Trump, lawmakers are likely to fasttrack the stablecoin regulation. The current timeline is slated for Q2 this year.

SEC’s Shifting Position on Oversight

The SEC, which once took a hard line on crypto regulation, is now adjusting its stance.

CoinGape noted earlier that the era of counterproductive oversight may be ending, as U.S. SEC and CFTC leaders have agreed to work together moving forward.

Historically, the SEC treated most tokens as securities, focusing on enforcement, while the CFTC took a softer approach to the markets. Recent laws like FIT21 aim to give the CFTC more control over decentralized assets.

With both regulatory bodies looking to create more cohesive plans for cooperation and the new leadership of Paul Atkins, the industry hopes to see challenges decrease, uncertainty evaporate, and greater clarity emerge in crypto regulation.

News data source: kdj.com

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