For years, the United States has been hailed as a beacon of capitalism. However, according to John E Deaton, a prominent figure in the crypto industry, the reality is far from this ideal. In a recent tweet, Deaton expressed his belief that the U.S. does not operate under a true capitalist system, but rather under a system of corporate capitalism. This system, he argues, discriminates against the working class, particularly through the accredited investor rules.
The accredited investor rules, as Deaton points out, are a clear example of this discrimination. These rules, which determine who can invest in certain types of securities, often exclude the working class. This exclusion is based on income and net worth criteria, which many argue disproportionately favor the wealthy and limit opportunities for the average citizen.
The Crypto Controversy
Deaton’s critique extends to the recent attacks on the crypto industry, particularly on Coinbase, a platform that allows non-accredited investors to acquire and trade crypto assets. He argues that instead of focusing on the fraud involved in crypto, the Securities and Exchange Commission (SEC) is spending its limited resources on attacking the secondary market on exchanges.
The SEC’s objection to retail investors being amici curiae in the Ripple case is another point of contention for Deaton. He argues that the SEC didn’t want retail investors to be heard, further highlighting the systemic bias against the working class.
Deaton’s critique is not limited to the financial sector of capitalism. He also criticizes the political landscape, arguing that despite the heated rhetoric between Democrats and Republicans, each election changes little. He cites the bailouts of car companies and banks under both George W. Bush and Barack Obama as evidence of this.
The Promise of Bitcoin and Crypto
Despite his criticisms, Deaton sees potential in the crypto industry. He praises the concept behind Bitcoin, which allows anyone with a smartphone to participate in free markets without the need for banks or middlemen. He also highlights the potential of small companies to offer viable alternatives to incumbent businesses, citing the example of a small New Hampshire company that could potentially compete with YouTube.
The Future of Capitalism
In conclusion, Deaton calls for a true capitalist system in the U.S. He believes that until term limits are implemented and the two-party system is ended, the status quo will remain. His tweet serves as a stark reminder of the systemic issues facing the U.S. economy and the potential of industries like crypto to disrupt these systems and pave the way for a more equitable future in comparison to capitalism.
