John Deaton Warns: The Battle for Crypto Future is Far from Over
John Deaton, founder of Crypto Law, has issued a stark warning to the cryptocurrency community, emphasizing that the fight against crypto is far from finished. In a recent social media post, Deaton highlighted the ongoing legal challenges the industry faces, particularly stemming from the Securities and Exchange Commission (SEC)‘s case against Ripple. He noted that the SEC’s argument not only targets Ripple but also claims that XRP itself is a security, disregarding over 75 years of legal precedent.
Deaton, who represents over 75,000 XRP holders, explained that while many believed the SEC’s actions were a one-off targeting Ripple, it quickly became clear that the broader crypto community was under attack. The filing of similar lawsuits against other platforms like Coinbase and Kraken only reinforced this sentiment.
Deaton also pointed out the rising threat of “Chokepoint 2.0”, a regulatory initiative aimed at cracking down on crypto. He warned that the ongoing battles, such as the one led by Caitlin Long and Custodia Bank against the Federal Reserve, signal that the war against the digital asset industry is not over.
The Growing Legal Threat to DeFi Developers
One of the most alarming developments in the crypto space is the ongoing legal case against Roman Storm, the developer of Tornado Cash, and developers from the Samourai Wallet. These cases are centered around Section 1960 of the U.S. Code, which pertains to unlicensed money transmitting businesses. Historically, developers who do not control users’ funds were not considered money transmitters, but the Department of Justice (DOJ) has taken a different stance.
Deaton stressed the importance of these cases, as a potential conviction for Roman Storm could have a “chilling effect” on the DeFi (decentralized finance) sector. This new legal precedent could drastically impact the ability of developers to innovate in the space without facing legal repercussions.
The Future of Crypto and the Fight Ahead
While the legal battle continues, one of the most significant threats remains the targeted action against DeFi projects and developers. Deaton’s warning is clear: the industry must stay vigilant, as the future of crypto could be at stake if these cases set damaging precedents.
The discussion over whether spot ETFs should be approved or which tokens qualify as securities may still be ongoing, but the immediate threat looms large from these legal cases targeting DeFi projects. The crypto community must remain alert as it faces the potential consequences of these legal developments.
Stay tuned as the fight for the future of cryptocurrency continues to unfold.
