The US Risks Losing Out on Leading the Web3 Revolution: Crypto Lawyer

• Crypto lawyer said crypto suppression in the US could draw the country behind.
• Previously, Senator Brown blamed Silvergate Bank’s insolvency on crypto’s volatility.
• Silvergate took $13.3 billion in deposits but only had $1.4 billion.

In a recent tweet, blockchain lawyer John Deaton warned that the US government’s attempt to suppress crypto could lead to the country missing out on the Web3 revolution. Deaton expressed this sentiment while reacting to the news that the US government has ultimately shut down the troubled crypto-friendly Silvergate Bank.

The crypto lawyer maintains that crypto is not going away, and the US risks falling behind in the race to lead the crypto revolution. Deaton also argued that the US should be rushing to ensure it leads the way, given that the country was fast losing its dollar dominance.

Last week, US Senator Sherrod Brown was quoted in a widely shared screenshot blaming Silvergate Bank’s insolvency on crypto’s volatility, adding that the risk would spread across the financial system without proper safeguards. “I’m continuing to work with my colleagues in Congress and financial regulators to establish strong safeguards for our financial system from the risk of crypto,” the statement read.

Many experts disagreed with the Senator, arguing that Silvergate Bank’s insolvency was caused by a discrepancy between demand deposits and available cash, unrelated to the bank’s involvement in crypto. According to a report, Silvergate had $13.3 billion in demand deposits but only had $1.4 billion on hand. “Had Silvergate held $13.3 billion in cash, the bank run would not have impaired its capital,” the CEO of CustodiaBank contended.

In the conversation, crypto lawyer Deaton noted that the authorities are not interested in the truth but are more prone to promoting a false narrative that suits their agenda.