Cryptocurrency advocate John Deaton opposes federal CBDC in Senate bid, calling it 'a hill worth dying on'

John Deaton, a well-known figure in the cryptocurrency industry, has strongly voiced his opposition to a US Federal Reserve-issued central bank digital currency (CBDC) as he campaigns for a Senate seat in Massachusetts.

His platform focuses on regulatory clarity, consumer rights, and greater government accountability. During an interview with Generation Infinity, Deaton reiterated his commitment to fighting against the implementation of a consumer-facing CBDC.

Opposition to CBDC Drives Deaton’s Campaign

Deaton expressed particular concern over a federal CBDC, suggesting that it could replace cash and enable government surveillance over individuals' spending habits. He acknowledged that CBDCs, if designed to reduce friction in the banking system, might be acceptable.

However, he was adamant that a consumer-issued CBDC would infringe on financial privacy and liberty.

He emphasised that his opposition was strong enough to make it a central tenet of his Senate run. Deaton referenced Senator Elizabeth Warren’s stance in favour of a CBDC, critiquing her proposed legislation, which he claimed could effectively ban Bitcoin and self-custody of crypto assets.

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Accountability and Term Limits

Deaton also discussed government accountability and the need for legislative reform, particularly through the imposition of term limits for senators and representatives. He criticised the rapid transition of regulators into private sector roles, arguing that such practices undermine regulatory integrity.

Using a direct example, Deaton condemned the movement of former regulators to the private sector without a sufficient cooling-off period.

He called for a statutory gap of three to five years to prevent regulators from immediately taking roles in the industries they once oversaw.

Clarity on Crypto Regulation

Beyond the CBDC issue, Deaton made a case for clearer regulations in the cryptocurrency industry. He pointed to the actions of the US Securities and Exchange Commission (SEC) as an example of the existing ambiguity in crypto regulations. Specifically, Deaton cited his involvement in the legal proceedings surrounding XRP and the need for the SEC to clarify that XRP itself is not a security.

According to Deaton, the lack of regulatory clarity has already caused some crypto entrepreneurs to steer clear of the US market altogether. He argued that without defined regulations, innovation is stifled, and businesses are increasingly avoiding the US as a base of operations.