Republican crypto bill is a “10x improvement” over all other bills: Messari CEO

Republican crypto bill is a “10x improvement” over all other bills: Messari CEO

Ryan Selkis, speaking at a Twitter Space sponsored by Coinbase in June 7, praised the new crypto legislation for giving new firms a clear path towards compliance.

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Messari CEO Ryan Selkis praised the newly proposed Republican crypto legislation, commenting that it was a “10x Improvement” over all other crypto laws introduced to Congress in the United States so far.

The “Digital Asset Market Structure Bill” , was introduced June 1. It proposes a framework for filling in regulatory gaps between the U.S. Commodity Futures Trading Commission (CFTC) and Securities Exchange Commission regarding activities relating to crypto-assets.

Selkis, who spoke on Twitter Spaces at an event hosted by Coinbase on June 7th, explained that the U.S. Representatives Patrick McHenry, Glenn Thompson and others have developed a way for tokens that are decentralized to be compliant without immediately triggering securities laws.

Selkis asked a rhetorical question: “How can tokens at their earliest stages be in compliance with securities law on a temporary and interim basis, unless they are sufficiently decentralized?”

He also acknowledged the work of former U.S. Securities Exchange Commission chair Hester Pierce who, in February 2020, released “Safe Harbor” proposals.

“A lot the language she included in her proposals is being worked out as legislative text, [and] this has kind of found its way into the new bill.” he added.

“I think this is a 10x better than anything we’ve seen before.”

The last crypto bill that was introduced in Congress was Digital Commodities Act. This was presented on 3 August to further supervise the crypto industry after the collapse of FTX.

TuongVy Le is the head of Bain Capital Crypto’s regulatory and policy, who echoed the comments made by Messari CEO. He added that DAMS gives token issuers a “path to compliance.”

Le said, “The problem that many crypto issuers and token projects face is that when you launch a token you don’t immediately become decentralized.”

She said that token issuers need time to “work towards that.” But while this is in the works, SEC could “bring enforcement actions against you.”

Le believes that DAMS will be able to solve this problem once and for all.

I think that this bill addresses it. It provides token issuers with a way to reach […], in a thoughtful manner.

Paul Grewal, chief legal officer of Coinbase, acknowledged that token issuers face a number of challenges.

The current law does not allow for assets to decentralize in a manner that is recognized by the law.

Related Lawyers criticize Gensler for claiming that all crypto is securities

The bill was discussed after the SEC filed recent lawsuits against two of the largest cryptocurrency exchanges – Binance, on June 5, and Cobase, on June 6 – for allegedly violating securities laws by offering unregistered tokens.

At least 67 cryptocurrencys are now considered by the SEC to be securities.

Binance Coin (BNB), Solana Coin (SOL), Cardano Coin (ADA), Polygon Coin (MATIC), and Cosmos Coin (ATOM) are among the tokens that the financial regulator considers securities.

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