Cryptocurrency

The crypto industry has long grappled with regulatory challenges, but a new bill introduced in the United States Congress has received high praise from industry leaders. Ryan Selkis, the CEO of Messari, hailed the proposed &#34;Digital Asset Market Structure&#34; (DAMS) bill as a remarkable improvement over previous crypto bills. In this article, we delve into the key features of the DAMS bill, the significance it holds for token issuers, and the hope it brings for resolving longstanding regulatory hurdles.A Pathway to Compliance through Decentralization:The DAMS bill, presented on June 1, aims to bridge the regulatory gaps between the US Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) concerning crypto-assets. Selkis commended the bill for offering a framework that allows tokens to achieve compliance through decentralization without immediately triggering securities laws. This crucial development addresses the conundrum of how tokens can comply with securities laws while in their early stages of development and insufficient decentralization.Acknowledging the Work of SEC Chair Hester Pierce:Selkis acknowledged the contributions of former SEC Chair Hester Pierce, particularly her &#34;Safe Harbor&#34; proposal from February 2020. Language from Pierce&#39;s proposal has found its way into the legislative text of the DAMS bill, making it a significant advancement. Selkis emphasized that the DAMS bill represents a tenfold improvement over any previous legislation introduced in this domain, indicating its potential to shape the future of crypto regulation in the United States.Addressing Token Issuers&#39; Challenges:TuongVy Le, head of regulatory and policy at Bain Capital Crypto, concurred with Selkis, highlighting that the DAMS bill offers token issuers a viable path to compliance. Currently, issuers face a dilemma where achieving decentralization takes time, leaving them susceptible to enforcement actions by the SEC. Le believes that the DAMS bill resolves this fundamental problem by providing a thoughtful and practical route for token issuers to work towards compliance.Overcoming Regulatory Roadblocks:Paul Grewal, the chief legal officer at Coinbase, acknowledged the difficulties faced by token issuers under the current regulatory framework. He noted that there is no reasonable pathway for assets that initially start as securities to evolve and decentralize within the bounds of the law. The DAMS bill seeks to rectify this by creating an environment where such assets can flourish and comply with regulations.Implications for the SEC&#39;s Recent Actions:The discussion surrounding the DAMS bill coincides with recent SEC lawsuits filed against major cryptocurrency exchanges, Binance and Coinbase. The SEC currently classifies at least 67 cryptocurrencies as securities, including notable tokens like Binance Coin (BNB), Solana (SOL), Cardano (ADA), Polygon (MATIC), and Cosmos (ATOM). The introduction of the DAMS bill holds promise in addressing the concerns raised by these lawsuits and establishing a clearer regulatory framework for the industry.The proposed DAMS bill has garnered significant acclaim within the crypto community, with Messari CEO Ryan Selkis heralding it as a remarkable improvement in US crypto regulation. By offering a pathway to compliance through decentralization, acknowledging the efforts of SEC Chair Hester Pierce, and addressing the challenges faced by token issuers, this bill brings hope for a more cohesive and practical regulatory environment. As the crypto industry continues to evolve, the DAMS bill represents a crucial step towards fostering innovation while ensuring adherence to necessary regulatory standards.

Republican Crypto Bill a ‘10x Improvement’ On All Others: Messari CEO

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