Digital Asset Expert John Deaton Warns of Potential Delays in Crypto Legislation Until 2029 Without GENIUS Act Passage

Digital asset lawyer John E. Deaton has issued a stark warning to U.S. lawmakers, emphasizing that unless the GENIUS Act is passed promptly, significant digital asset legislation or reforms might not materialize until 2029, according to an October 14 report by Coinpedia.

Deaton argued that the GENIUS Act transcends a mere cryptocurrency bill; he described it as vital legislation deserving of bipartisan support. Alex Thorn of Galaxy Research echoed this sentiment, advocating that the GENIUS Act be rebranded as a “dollar supremacy act,” highlighting its role in reinforcing the U.S. dollar’s global dominance.

Reform Delays Could Jeopardize the Crypto Landscape

Ryan Selkis, founder of Messari, expressed similar concerns, stating that failure to secure immediate progress on this legislation could stall structural reforms for years. Selkis indicated that if the bill isn't passed now, future legislative discussions, particularly under a hypothetical second Trump administration, could encounter significant obstacles.

“This bill’s failure could mean that, under a future Trump presidency, even basic cryptocurrency legislation won’t be brought forward. Concurrently, the GENIUS Act is specifically designed to support stablecoins backed by the U.S. dollar,” Selkis emphasized.

Strategic Implications for the U.S. Dollar and Stablecoins

Deaton also underscored the urgency of swift legislative action, particularly as nations like China and Russia actively pursue “de-dollarization” strategies. “Backing dollar-pegged stablecoins increases demand for U.S. Treasury assets and helps preserve the dollar’s status as the dominant global reserve currency,” Deaton explained.

He added that inconsistent U.S. regulatory policies on cryptocurrencies are hampering progress. Deaton criticized the cyclical pattern of one administration enforcing harsh policies, only for the next to adopt overly lenient stances—treating digital assets merely as a political tool to garner votes.

Inadequate Legal Framework for Emerging Technologies

Deaton lamented that the U.S. is still attempting to regulate innovative technologies like cryptocurrencies and artificial intelligence using legislative frameworks from the 1930s and 1940s. Without bipartisan support for the GENIUS Act, Deaton cautioned that substantial market-structure reforms in the crypto space might become unattainable.

Selkis reiterated his warning, stating that if substantive action is not taken this week, crypto reforms and legislation could face insurmountable resistance during a potential Trump administration.

Coinbase’s Strategic Silence Amid Regulatory Uncertainty

Meanwhile, Deaton speculated on Coinbase’s strategic behavior, suggesting that the company’s silence on certain regulatory issues might be a calculated move to secure competitive advantages amid the current climate of uncertainty.

As debates on the GENIUS Act continue, industry leaders and legal experts remain adamant that immediate action is critical for ensuring the U.S. retains economic and technological leadership in the rapidly evolving digital asset ecosystem.