John Deaton Advocates for Major SEC Reforms Under New Chair Paul Atkins to Benefit XRP and Crypto Industry

John Deaton, an attorney known for his advocacy of XRP, has proposed a series of crucial reforms for the U.S. Securities and Exchange Commission (SEC) under its new Chair, Paul Atkins. Deaton, who has been vocal in his criticism of the SEC’s previous administration under Gary Gensler, argues that these changes are essential for enhancing transparency and fostering a more favorable environment for the cryptocurrency industry.

In a detailed commentary shared on his social media platform, Deaton underscored the immediate need for reform at the SEC, emphasizing the role that Paul Atkins must play in this transformation. Deaton’s first recommendation for Atkins is a swift restructuring of the SEC’s personnel, particularly those involved in the controversial Debt Box incident. This step, according to Deaton, is crucial for shedding the vestiges of misconduct prevalent during Gensler’s tenure.

Deaton has made it clear that prompt action is necessary, stating that if Atkins does not take immediate steps to either terminate or demote certain SEC officials and dismantle the current cryptocurrency unit, his appointment could be deemed inappropriate. Deaton’s stance highlights the need for fresh leadership that is more aligned with a pro-innovation stance while ensuring regulatory compliance.

He further advocates for a reshaping of the SEC’s leadership structure, urging Atkins to bring in new appointees rather than retaining those chosen by his predecessor. Deaton believes that a fresh approach is crucial for the SEC to adapt to the rapidly evolving demands of the cryptocurrency market. By appointing leaders who can balance regulatory oversight with the promotion of innovation, the SEC could foster a more supportive environment for digital assets.

Earlier expressions of support for Paul Atkins by Deaton were grounded on Atkins’ perceived pro-crypto inclination and his willingness to reduce regulatory complexities. Deaton is optimistic that Atkins’ leadership could bring about a much-needed equilibrium and transparency within the SEC, steering away from the perceived adversarial stance towards the crypto sector seen under previous leadership.

One of Deaton’s significant proposals is the abolition of the SEC’s dedicated crypto unit. He argues that this specific unit is redundant and that the SEC should instead operate a generalized fraud unit capable of addressing all forms of fraudulent activity. By eliminating the crypto-specific unit, Deaton suggests that the SEC could streamline its operations and prevent unnecessary regulatory overreach, thus facilitating a more efficient regulatory framework.

Furthermore, Deaton recommends that from day one, Paul Atkins should clarify that decentralized finance (DeFi) platforms and self-custody practices should not fall under the SEC’s regulatory purview. This shift in approach could significantly alter the landscape of crypto regulation, offering more freedom and clarity to innovators while maintaining investor protection.

Ripple’s CEO, Brad Garlinghouse, also expressed his support for the new SEC Chair, echoing Deaton’s call for clearer and less antagonistic crypto regulations. Garlinghouse’s endorsement of Atkins highlights a broader industry desire for a regulatory environment that not only protects investors but also supports the burgeoning growth and innovation within the cryptocurrency space.

These proposed changes come at a pivotal time when the cryptocurrency industry is experiencing significant growth and increased scrutiny from regulatory bodies around the world. By implementing these reforms, Deaton and other advocates hope that the SEC can provide a regulatory framework that encourages innovation while safeguarding market integrity.

As Paul Atkins assumes his new role, his response to these calls for reform will be keenly watched by stakeholders within the cryptocurrency industry and beyond. The proposed changes could set a significant precedent for how regulatory bodies engage with digital assets, potentially influencing global regulatory standards.