Pro-XRP Lawyer Gives White House Crypto Council Advice on What to Prioritise
2025-01-23
John Deaton, a well-known advocate for XRP and crypto, has outlined his recommendations for the White House Crypto Council under President Trump.
His proposals focus on regulatory changes that could drive crypto adoption, support the economy, and position the United States as a leader in the blockchain space.
Repealing SAB 121 to Boost Financial Inclusion
John Deaton’s first recommendation is repealing the SEC’s Staff Accounting Bulletin 121 (SAB 121). Introduced in 2022, this rule has made it difficult for banks and financial institutions to hold crypto assets for their clients.
Deaton believes removing this regulation is essential for integrating crypto into the broader financial system. With a more crypto-friendly administration and a new SEC chair, the opportunity to revisit and reverse restrictive policies has never been stronger.
Industry leaders like Eric Weiss agree that enabling banks to offer crypto custody services would expand adoption and allow clients to use their crypto assets as collateral for loans.
This could unlock new opportunities for both consumers and financial institutions, paving the way for crypto’s mainstream acceptance.
A Strategic Bitcoin Reserve for Long-Term Stability
Another key suggestion from Deaton is the establishment of a Strategic Bitcoin Reserve (SBR). He proposes that the U.S. government secure its Bitcoin holdings, currently estimated at 200,000 BTC, by locking them in a cryptographic escrow for 20 years.
Deaton argues that creating a Bitcoin reserve would demonstrate confidence in digital assets and strengthen the country’s financial stability. This initiative would require Congressional approval, and Senator Cynthia Lummis has already introduced a bill to support such a move.
While Deaton acknowledges the challenges of passing the legislation, particularly given the political landscape, he emphasises its importance for the country’s economic future. A Bitcoin reserve, he believes, would cement the U.S.’s leadership in the global digital economy.
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Reforming Crypto Tax Laws to Encourage Adoption
Deaton’s final recommendation involves addressing the burdensome tax policies surrounding crypto. Currently, the IRS classifies digital currencies as property, which means every transaction is subject to capital gains taxes.
This classification makes it difficult for crypto to be used in everyday transactions, such as purchasing goods or paying for services. Deaton suggests revising these tax rules to exempt crypto payments from triggering capital gains taxes.
By simplifying the tax process, more people would be encouraged to use crypto, fostering adoption and making digital currencies a practical option for both individuals and businesses.
Deaton describes this change as a “game changer” for the industry, aligning with efforts to make the U.S. a global leader in blockchain innovation.
Conclusion
John Deaton’s recommendations to the White House Crypto Council provide a clear path for advancing the crypto sector in the United States.
Repealing SAB 121, establishing a Strategic Bitcoin Reserve, and reforming crypto tax laws are practical steps that could drive adoption and solidify the U.S.’s leadership in the digital economy.
Meanwhile, Ripple’s XRP continues to thrive, maintaining its bullish momentum following Trump’s election. With significant price gains and strong market optimism, XRP’s performance underscores the importance of supportive policies for the broader crypto market.
Read more: How Donald Trump's Promises impact XRP and BTC Prices
Frequently Asked Questions
What is SAB 121, and why is it controversial?
SAB 121 is a regulation introduced by the SEC in 2022 that makes it challenging for banks to custody crypto assets. Repealing it would allow banks to integrate crypto services more easily.
Why is a Strategic Bitcoin Reserve important for the U.S.?
A Bitcoin reserve would enhance financial stability, show confidence in digital assets, and position the U.S. as a leader in the global digital economy.
How would crypto tax reform benefit users?
Revising tax policies to exempt crypto payments from capital gains taxes would simplify transactions and encourage broader adoption of digital currencies.
Investor Caution
While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.
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