Pro-XRP lawyer highlights the White House Crypto Council should focus on

Pro-XRP attorney John Deaton recently outlined his vision for critical crypto policies that the White House Crypto Council should prioritize under President Donald Trump’s administration.

Deaton emphasized several key areas, including repealing SAB 121, establishing a strategic Bitcoin reserve (SBR), and reforming crypto tax policies. 

In his January 22 X post, the XRP advocate started by recommending the abolition of SAB 121, which is the US Securities and Exchange Commission (SEC) controversial Staff Accounting Bulletin 121 law. 

The regulation, which took effect in 2022, imposes significant hurdles for banks and financial institutions to hold crypto assets for their investors.

Deaton suggests that SAB 121’s repeal could allow crypto to become more involved in the global financial infrastructure. This comes in the midst of a more crypto-friendly US administration and a new SEC chair.

Deaton: Create a de-facto Strategic Bitcoin Reserve

As his second plea to the council, the pro-XRP lawyer mentioned Trump’s idea to create a Strategic Bitcoin reserve. He called for the US government to lock 200,000 Bitcoin, which is currently in its possession, into a cryptographic escrow for 20 years. 

“In order to establish a SBR where the government actually buys BTC (eg 500K to 1M BTC) over a specific period of time. He added, “it will require an Act of Congress. Senator Lummis has a proposed bill.”

This move, he argued, would create a de facto Bitcoin reserve to enhance the nation’s financial stability. This would also demonstrate confidence in digital assets as a cornerstone of the future economy.

Moreover, the US veteran proposed allowing taxpayers to use cryptos like Bitcoin for payments without triggering capital gains taxes. Deaton believes this would significantly reduce the financial burden on crypto users, and will promote broader adoption. 

“A lot of people are expecting a SBR to get passed. I believe that is overly optimistic. Republicans don’t have a big majority. Plus, Congress doesn’t act very fast and ONE YEAR from now, we’ll be in midterm election season” he remarked.

He added that, “The midterms come quick. If the Democrats take control of the Senate in 2026 (not saying it’ll happen only IF), guess who’s in charge of the Senate Banking Committee!” 

In his last point, the lawyer called for a revision of the IRS classification of digital currencies as properties. This designation subjects every transaction to capital gains taxes. 

“Bitcoin/Crypto is treated like property by the IRS,” Deaton remarked. He adds that, “If you want to use Crypto to pay for a new car or as a down payment on a new home, you’re subject to capital gains taxes. Changing the classification is a game changer.”

Deaton’s advocacy aligns with sentiments shared by industry voices like Eric Weiss, who had shared his thoughts on SAB 121 earlier. He said that enabling banks to custody crypto could accelerate market growth. To that end, clients will now be able to take loans against their crypto holdings. 

XRP’s market optimism

Meanwhile, Ripple Labs’ token XRP has reclaimed unseen price levels in recent months. This comes on the backdrop of Donald Trump’s election victory in November. 

Since then, XRP has experienced an over 300% price spike that saw it reach a seven year high of $3 on January 15, 2025.

According to market analyst on X CaptJackTurner, the Relative Strength Index (RSI) sits at 64.68. This places XRP in a neutral to slightly overbought range, suggesting potential for further gains if resistance levels are breached.

Here’s a 1-hour technical analysis of the $XRP chart:

– Price: $3.24127, up 3.36% from the previous close, indicating a bullish trend. Price has bounced from $3.16385, suggesting buying interest.
– Candlestick patterns: Mix of red and green candles, with a strong buying push on… pic.twitter.com/VTg8w1KIrg

— CaptJackTurner (@XRPOrbit) January 22, 2025

XRP’s recent surge has been supported by its performance above the 20-period moving average. This signales a shift from bearish to bullish momentum. The immediate resistance at $3.239 has been hit but not decisively broken. 

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