Ryan Selkis, the CEO of Messari, has lauded the recently introduced Republican crypto bill, hailing it as a massive leap forward that surpasses all previous attempts at crypto legislation undertaken by the US Congress. Selkis expressed his admiration for the bill, claiming it is a “10x improvement” over previous ones, emphasizing its potential to address the complexities and challenges of the crypto sector.
The Digital Asset Market Structure (DAMS) Bill
Unveiled on June 1, the new “Digital Asset Market Structure” (DAMS) bill aims to introduce a visionary framework focused on bridging the regulatory gaps surrounding crypto-assets. By establishing a unified structure, this legislation addresses the regulatory gray areas between the US Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC).
The DAMS bill seeks to establish a robust and comprehensive regulatory process in the rapidly evolving domain through this innovative approach. During a Twitter Spaces event hosted by Coinbase on June 7, Selkis shared his thoughts on the significant development.
The Messari CEO revealed that US Representatives Patrick McHenry and Glenn Thompson have collaboratively devised a pioneering approach that presents a pathway for tokens to achieve regulatory compliance through decentralization. Moreover, the proposal aims to navigate the complex landscape of securities laws without triggering immediate impacts, offering a nuanced and progressive solution to promote regulatory alignment and foster innovation within the digital asset ecosystem.
Selkis further extended his appreciation to Hester Pierce, the former SEC chair, recognizing her previous achievement. During her time at the commission, Pierce introduced the “Safe Harbor” proposal in February 2020, laying the groundwork for significant discussions.
Notably, critical elements from Pierce’s proposal are now being meticulously incorporated into the legislative text, shaping the foundation of this new bill and representing a seamless integration of forward-thinking ideas and practical solutions.
Similar Regulatory Bills
Before the recently proposed crypto bill, previous legislative initiatives addressed issues within the crypto industry. For instance, Congress unveiled the Digital Commodities Consumer Protection Act on August 3.
This bill seeks to reinforce oversight within the crypto sector in response to the FTX collapse, underscoring the importance of ensuring consumer protection and regulatory vigilance in the wake of such incidents. TuongVy Le, the head of regulatory and policy at Bain Capital Crypto, echoed the same sentiment as Selkis.
Le stressed the significance of the DAMS bill, affirming that it represents a long-awaited breakthrough by providing token issuers with a clear and defined pathway to achieve compliance. This newfound clarity introduced by the bill has the potential to revolutionize the regulatory landscape, enabling issuers to navigate the complexities of compliance requirements more effectively.
Le points to the pressing issue faced by token issuers, emphasizing the need for a designated timeframe to work towards achieving compliance. Despite the challenges, Le maintained an optimistic outlook, stating that the DAMS bill has the potential to address and resolve this fundamental issue once and for all.
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