Ryan Selkis, the CEO of Messari, welcomed a recently proposed Republican crypto law, saying it is “10x better” than all prior crypto bills previously presented to the US Congress.
The “Digital Asset Market Structure” (DAMS) bill, launched on June 1, seeks to provide a framework to close the loopholes in regulation between the U.S. SEC and Commodity Futures Trading Commission on actions involving cryptocurrency.
On June 7, Selkis stated at a Coinbase-sponsored event on Twitter Spaces that Congressmen Glenn Thompson and Patrick McHenry had created a plan for tokens to achieve conformity via decentralisation without immediately triggering securities regulations.
When it comes to temporarily complying with securities rules, how could tokens in their early stages do so unless and until they were properly decentralised? Selkis made a rhetorical query.
He continued by praising Hester Pierce, the former chair of the U.S. Securities Exchange Commission, who had published a “Safe Harbour” plan in February 2020.
A significant portion of the language she offered in those ideas is now being carried out in legal form and it sort of made its way into this new measure.
Ryan states, “I do believe that this is a 10x improvement over what we have previously seen.”
The Digital Commodities Consumer Protection Act, which was proposed on August 3 to give additional oversight over the crypto business after the collapse of FTX, was the most recent bill of the same kind to address the topic of cryptocurrencies in Congress.
The chief of regulatory and policy at Bain Capital Crypto, TuongVy Le, endorsed the CEO of Messari’s remarks and noted that DAMS at last provides token issuers with “a path to conformity.”
Le added, the problem that many cryptocurrency issuers or token initiatives encounter is that they don’t immediately become decentralised after issuing a token.
She said that token makers ” require time to work towards that,” but that the SEC may intervene and “bring sanctions against you” while that was happening.
Le believes that this has always been the “basic problem,” but she is still optimistic that DAMS can fix it once and for all.
The difficulties that many token producers are facing were also noted by Coinbase’s chief legal officer, Paul Grewal.
The SEC recently sued Binance on June 5 and Coinbase on June 6 for allegedly violating securities laws by marketing tokens as unregistered securities, which prompted discussion of the proposed legislation.
At present SEC classified total of 67 cryptocurrencies as securities.