In a candid and sobering take on U.S. crypto policy, prominent pro-XRP lawyer John Deaton has raised serious concerns that regulatory progress on stablecoins may be far more distant than most anticipate. According to Deaton, if Congress fails to pass the long-anticipated stablecoin legislation known as the GENIUS Act, meaningful crypto reform may not materialize until as late as 2029—a delay that could have wide-reaching consequences for the future of digital assets in the United States.
Deaton, known for his fierce advocacy in the XRP vs. SEC case and his consistent push for regulatory clarity, voiced his concern on X (formerly Twitter). He warned that the failure to act on the GENIUS Act could stall not only stablecoin regulation but also broader market structure legislation for years to come—potentially hinging on the outcome of the 2024 U.S. Presidential election.
A “Dollar Dominance Bill” at Risk
Deaton isn’t alone in his concerns. His remarks were in response to thoughts shared by Ryan Selkis, the founder of Messari, who has also criticized the sluggish pace of Washington’s crypto policy progress. Deaton echoed Selkis’ urgency, describing the GENIUS Act as a pivotal opportunity that, if missed, might push reform off the political radar until the end of the decade.
What’s especially telling is that Deaton has labeled the GENIUS Act as the “Dollar Dominance Bill”—a phrase that reflects his belief in the legislation’s strategic importance beyond just crypto. To Deaton, stablecoins are not just a blockchain concern—they’re a national security matter. He argues that encouraging U.S. dollar-backed stablecoins is crucial to maintaining the dollar’s supremacy in an increasingly multipolar economic world. As other countries actively explore de-dollarization strategies, Deaton insists that strong demand for U.S. Treasuries—fueled in part by USD-backed stablecoins—could be a powerful defense of the dollar’s global role.
“We’re in an era where de-dollarization isn’t just talk—it’s policy in some countries,” Deaton wrote. “We must drive demand for U.S. Treasuries and ensure the dollar remains the world’s reserve currency.”
Pushback From Capitol Hill
Despite support from crypto advocates, the GENIUS Act isn’t sailing through unopposed. One of the most vocal critics is Senator Elizabeth Warren, a longtime skeptic of the crypto industry. Warren has expressed serious concerns over the potential implications of the bill, particularly its alignment with what she calls “Trump’s stablecoin project.” She contends that the legislation, in its current form, could pose national security risks and pave the way for regulatory loopholes that undermine consumer protection and financial oversight.
In her own words: “The Senate shouldn’t greenlight this corruption by passing the GENIUS Act without fixes.”
This political friction highlights the increasingly polarized nature of crypto regulation in the U.S. What some see as a straightforward, bipartisan opportunity to anchor the dollar in the digital age, others view with suspicion as a potential Trojan horse for deregulation and misuse.
What’s Next?
For now, the crypto community is watching Washington with cautious optimism—tempered by the reality that legislative momentum in an election year is notoriously difficult to maintain. If the GENIUS Act fails to pass before a potential administration change, the odds of meaningful legislation in the near term shrink dramatically.
Deaton’s stark warning is more than just legal analysis—it’s a call to action. For crypto advocates, the message is clear: engage policymakers, make the economic case, and don’t assume time is on your side.
In the rapidly evolving landscape of digital finance, 2029 can feel like a lifetime away.
