John Deaton: Other States May Ignore New York’s New Crypto Laws
- John Reed Stark thinks other US states could follow suit with similar crypto regulations.
- John E. Deaton thinks otherwise, citing previous scenarios where other states ignored New York.
Recent crypto regulation passed by the New York Attorney General (AG), Letitia James, may not be adopted by other states in the US, according to John E. Deaton, Managing Partner at the Deaton Law Firm. Deaton expressed his sentiment towards the new bill’s widespread adoption while responding to a tweet by John Reed Stark, Senior Lecturing Fellow at Duke University School of Law.
In an earlier tweet, Stark proposed the recently announced regulation as “bold and powerful”. He anticipated an opposing view from the crypto community, expecting them to move against the bill before other states in the US adopt similar measures. He noted that the proposed regulation is not what ‘Big Crypto’ wants.
Deaton toned down Stark’s expectation by observing that the New York Attorney General is politically motivated, and the state lacks a strong reputation in crypto regulatory leadership. Deaton cited a past event when New York pushed to ban Bitcoin, but several other US states moved in the opposite direction.
According to reports, the recently proposed regulation by the New York AG aims to protect investors, consumers, and the broader economy. The bill targets to address the lack of robust laws that make the multi-billion-dollar industry prone to dramatic market fluctuations and prevent the facilitation of criminal conduct and fraud using cryptocurrencies.
Furthermore, AG James’ new crypto regulation aims to increase transparency, eliminate conflict of interest, and impose commonsense measures to protect investors and be consistent with laws guiding other financial services.
While announcing the bill, Attorney General James said,
“Rampant fraud and dysfunction have become the hallmarks of cryptocurrency, and it is time to bring law and order to the multi-billion-dollar industry, and New York investors should have the peace of mind that safeguards are in place to protect them and their money.”
She noted that all investments are regulated to account for every penny of investors’ money, and cryptocurrency should be no exception. According to her, these commonsense regulations will bring more transparency and oversight to the industry and strengthen the regulators’ ability to crack down on those that don’t pay respect to the law.