Messari CEO Ryan Selkis has praised a new Republican cryptocurrency bill; he commented that it is a “10 times improvement” than all other cryptocurrency bills introduced so far. in the United States Congress.
In his intervention At an event hosted by Coinbase on Twitter Spaces on June 7, Selkis explained that US representatives Patrick McHenry and Glenn Thompson have drafted a pathway for tokens to achieve compliance through decentralization without instantly triggering securities laws..
— Coinbase ️ (@coinbase) June 7, 2023
“How could early-stage tokens be temporarily compliant with securities laws unless and until they were sufficiently decentralized?” asked Selkis rhetorically..
Next, recognized the previous work of the president of the United States Securities and Exchange Commission, Hester Piercewho published a proposal of “Safe Harbor” in February 2020.
“Much of the language that she had included in those proposals is now being worked into the legislative text. [y] has made its way into this new bill.” He added:
“This is probably a 10-fold improvement over anything we’ve seen so far.”
The last similar cryptocurrency bill to reach Congress was the Digital Commodities Consumer Protection Act, which was presented on august 3 to provide greater oversight over the cryptocurrency industry following the collapse of FTX.
The Messari CEO’s comments were seconded by TuongVy Le, head of regulation and policy at Bain Capital Crypto.who added that DAMS finally offers token issuers “a path to compliance.”
“The problem many cryptocurrency issuers or token projects face is that when you launch a token, you don’t immediately decentralize, do you?” Le said..
Great to be on today with @iampaulgrewal @JBSDC @twobitidiot! @coinbase thanks for having me. There’s a lot going on right now, but we are fighting for progress and innovation and something better than the status quo. And we will get there! -onward!
— TuongVy Le ️ (@TuongvyLe12) June 7, 2023
It’s great to be with @iampaulgrewal @JBSDC @twobitidiot today! @coinbase thanks for having me. There’s a lot going on right now, but we’re fighting for progress and innovation and something better than the status quo. And we will get it! – forward!
He explained that token issuers “need time to work on that,” but while that’s happening, the SEC may swoop in and “take enforcement action against you.”.
Although Le considered that this has always been the “fundamental problem”, He remains hopeful that DAMS can solve it once and for all:
“I think this bill addresses that. Offer token issuers a path to achieve this […] in a really thoughtful way.”
Paul Grewal, Coinbase’s chief legal officer, also acknowledged the issues faced by many token issuers.:
“Under current law there really isn’t a reasonable path for those assets that start life as a security to evolve and become largely involved in decentralizing in a way that is recognized under the law.”
While there are many details to be ironed out, the Digital Asset Market Structure Discussion Draft is a strong step towards developing a regulatory regime that embraces innovation, maintains US industry presence and protects consumers.
— paulgrewal.eth (@iampaulgrewal) June 5, 2023
While many details remain to be ironed out, the discussion draft on the structure of the digital asset market is a strong step toward developing a regulatory regime that embraces innovation, maintains a presence for US industry, and protects consumers.
The bill was discussed in light of recent lawsuits filed by the SEC against the two largest cryptocurrency exchanges – Binance on June 5 and Coinbase on June 6.– for allegedly violating securities laws by offering tokens as unregistered securities.
Currently, the SEC considers at least 67 cryptocurrencies to be classified as securities..
Among the most prominent tokens that the financial regulator considers securities are Binance Coin (BNB), Solana (SUN), Cardano (ADA), Polygon (MATIC) and Cosmos (ATOM).
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