CryptoLaw founder John Deaton believes that the final and most aggressive push to shut down crypto might soon be witnessed in the wake of the White House's statement on mitigating risks associated with cryptocurrencies.
"We will soon witness the final and most aggressive push to shut down crypto," Deaton wrote.
We will soon witness the final and most aggressive push to shut down crypto. https://t.co/w4O23zbN40— John E Deaton (@JohnEDeaton1) January 28, 2023
The White House published a statement titled "The Administration's Roadmap to Mitigate Cryptocurrency Risks" on Jan. 27.
The statement reads:
"We have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authorities that the Executive Branch has."
The legislative guidance provided by the administration called on the U.S. Congress to step up its efforts.
"For example, Congress should expand regulators' powers to prevent misuses of customers' assets—which hurt investors and distort prices—and to mitigate conflicts of interest," the document further stated.
SEC seeks to expand its claim of authority
The United States Securities and Exchange Commission (SEC) has increased its clampdown on the cryptocurrency market under the leadership of chair Gary Gensler, who was appointed to the post in April 2021.
As it is, the SEC is attempting to broaden its claim of authority, as Gensler has repeatedly stated that the agency intends to be the primary regulator of the U.S. crypto market.
Gensler believes that nearly any other crypto token aside from Bitcoin could be a security, and has pursued some recent actions.
Ripple is currently in the midst of a legal battle with the SEC, which alleges that the $1.3 billion sale of XRP constituted an unregistered security offering.
Ripple executives expressed their views on cryptocurrency regulation at the start of the year. Among these, General Counsel Stu Alderoty anticipates the judge's ruling in Ripple's SEC lawsuit in the first half of 2023 — and one that is favorable to Ripple.
He believes this will be the catalyst needed to push the U.S. crypto industry forward and to stop businesses from offshoring their crypto work.