Groundbreaking Cryptocurrency Legislation Earns CEO Praise [Advance Cash ]

Groundbreaking Cryptocurrency Legislation Earns CEO Praise

Groundbreaking Cryptocurrency Legislation Earns CEO Praise

Ryan Selkis, the influential CEO of Messari, brought a fresh perspective when he enthusiastically endorsed groundbreaking Republican-drafted cryptocurrency legislation. Selkis said that this initiative so far surpasses all other crypto-related bills submitted to the US Congress.

The legislation, known as the "Digital Asset Market Structure" or DAMS, was introduced on June 1. Its goal is to bridge the regulatory gap between the US Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) regarding cryptocurrency matters.

Selkis shared his views during a Twitter Spaces event hosted by Coinbase on June 7, applauding representatives Patrick McHenry and Glenn Thompson for their efforts to explain how tokens can comply with regulations through decentralization without triggering securities laws immediately.

The Messari CEO expressed curiosity about how early-stage cryptocurrency tokens could temporarily comply with securities regulations until they reach a satisfactory level of decentralization. He also acknowledged the earlier work of Hester Pierce, the former SEC Chairman, who introduced the "Safe Harbor" proposal in February 2020.

In August of the previous year, Congress received the Digital Commodities Consumer Protection Act, a bill proposed in response to the FTX fallout, aimed at bringing in tighter oversight of the growing crypto space.

In addition to Selkis, TuongVy Le, head of regulation and policy at Bain Capital Crypto, also gave credit to DAMS, highlighting how it provides cryptocurrency issuers with a “pathway to regulatory compliance.” The further pointed out that if issuers strive to comply, the SEC can still take legal action against them.

This discussion around the new bill follows recent lawsuits by the SEC against two major cryptocurrency exchanges, Binance and Coinbase, for allegedly violating securities laws by offering unregistered securities as tokens. The SEC currently classifies 67 cryptocurrencies as securities, including Cardano, Solana, Cosmos, Aave, and Binance Coin.

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