Crypto Lawyer Calls Out US Senator Brown for Anti-Crypto Bias

• Crypto lawyer described US asset regulators as anti-crypto thugs.
• Senator Brown blamed Silvergate Financial institution’s insolvency on crypto’s volatility.
• A crypto fanatic argued Silvergate’s case was consumer deposit mismanagement.

In a current tweet, crypto lawyer John Deaton expressed frustration with the US regulatory authorities, who he believes are deliberately selling a false narrative concerning the crypto trade. Deaton described them as “anti-crypto incumbent defending regulatory thugs” whereas reacting to a remark by Senator Sherrod Brown.

I simply tweeted a couple of minutes in the past how these anti-crypto incumbent defending regulatory thugs have been by no means going to let the reality get in the way in which of the BS narrative they intend to advertise. All we are able to do is preserve hitting them with information and the reality as Caitlin does right here. https://t.co/dau1jR3yEq

— John E Deaton (@JohnEDeaton1) March 9, 2023

Senator Brown was quoted in a broadly shared screenshot blaming Silvergate Financial institution’s insolvency on crypto’s volatility. “We’re seeing what can occur when a financial institution is over-reliant on a dangerous, unstable sector like cryptocurrencies,” the assertion learn.

The crypto lawyer Deaton argued that the authorities aren’t within the reality however in selling a false narrative that fits their agenda of obstructing crypto adoption. He believes the one option to fight these detrimental narratives is to proceed presenting factual details about cryptocurrencies.

Notably, the CEO of CustodiaBank, Caitlin Lengthy, countered the arguments of Senator Brown with factual info. Lengthy asserted that Silvergate Financial institution’s insolvency was brought on by a discrepancy between demand deposits and accessible money, which isn’t associated to crypto.

The CustodiaBank CEO buttressed that Silvergate had $13.3 billion in demand deposits however solely had $1.4 billion of cash available. “Had Silvergate held $13.3 billion of money, the financial institution run wouldn’t have impaired its capital,” Lengthy concluded.

Final Thursday, the share worth of Silvergate plummeted by practically 50% after contemporary revelations about its publicity to the bankrupt FTX crypto alternate prompted questions concerning the financial institution’s skill to recuperate. Consequently, the USDC stablecoin issuer moved its leftover reserve deposits held on the troubled financial institution to its different banking companions.

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