So far, the new crypto bill proposed by the Republican party is receiving support from crypto industry players.
The CEO of data analytics firm Messari, Ryan Selkis, lauds the recently proposed Republican crypto bill, underscoring its superiority compared to other crypto bills presented in the US Congress.
Selkis voiced his observations during a Twitter Spaces event hosted by Coinbase on June 7th.
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The man shed light on the plans drafted by US Representatives Patrick McHenry and Glenn Thompson on the "Digital Asset Market Structure" bill. In particular, Selkis commented on the aim to enable tokens to achieve compliance through decentralization while evading an immediate initiation of securities laws.
On top of that, Selkis expressed appreciation for the previous efforts of US Securities Exchange Commission (SEC) Chair Hester Pierce. The former SEC chair unveiled a "Safe Harbor" proposal in February 2020, parts of which, Selkis notes, are now reflected in this new bill.
Highlighting the bill's potential, Selkis proclaimed:
I do think that this is probably a 10x improvement versus anything that we've seen so far.
The legislation in question is the "Digital Asset Market Structure," or DAMS, which came into the picture on June 1st. The bill aims to lay out a regulatory framework to bridge the void between the US Commodity Futures Trading Commission (CFTC) and Securities Exchange Commission (SEC) views on crypto-assets.
Paul Grewal, the chief legal officer at Coinbase, underscored the challenges many token issuers face under current laws. These laws fail to provide a viable pathway for those assets initially classified as security to evolve, predominantly through decentralization, in a way that's recognized legally.
The discussion around this bill assumes greater significance given the SEC's recent legal actions against Binance and Coinbase, two of the largest cryptocurrency exchanges. The allegations involve these platforms' purported breach of securities laws by offering tokens as unregistered securities.
Currently, the SEC classifies over 60 cryptocurrencies as securities.
The potential of the DAMS bill to revolutionize the crypto-assets regulatory process represents a significant leap in fostering compliance and decentralization in the crypto world.
