John E. Deaton Urges SEC and CFTC to Merge for Streamlined Crypto Regulations

John E. Deaton, a prominent voice in the crypto industry, has reiterated his stance on the importance of improved regulation. He has been critical of SEC Chair Gary Gensler and his approach, which many believe is hindering the growth of cryptocurrencies. Deaton has proposed a potential solution: merging the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission).

Emphasizing the need for “One Crypto, One Rule,” Deaton joined Perianne Boring on Mornings with Maria to discuss how having separate agencies overseeing financial markets can lead to confusion and inefficiencies. Combining the two agencies could eliminate overlapping responsibilities and conflicts, providing a clearer regulatory framework for companies dealing with both securities and commodities.

Deaton argues that cryptocurrencies often exist in a gray area between securities and commodities, making a unified regulator essential for simplifying regulations. This consolidation would bring the U.S. in line with other countries’ single financial regulators, enhancing competitiveness in global markets.

Notably, advocates of Dogecoin (DOGE) such as Elon Musk and Vivek Ramaswamy are also supporting the merger of the SEC and CFTC. This move could offer clarity in regulations for innovative technologies like cryptocurrencies, benefiting investors and businesses navigating the complex regulatory environment.

Deaton also highlighted the urgency for consolidation in the payments sector, where numerous federal agencies handle regulation. A unified framework could streamline processes and prevent regulatory discord like the case of XRP, which faced conflicting classifications leading to investor losses.

U.S. Congressman John Rose introduced a bill on Sep 12 to promote collaboration between the SEC and CFTC through a Joint Advisory Committee on Digital Assets. The committee, part of the “Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act,” would include industry experts and academics to advise on harmonizing laws, measuring digital assets, and leveraging blockchain for efficiency and consumer protection.

Rose’s initiative aims to replace “regulation-by-enforcement” with a cooperative framework that nurtures U.S. innovation. His pro-crypto stance includes supporting the FIT21 Act and opposing excessive government control over digital assets.

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