The most recent action to provide the cryptocurrency sector the much-needed regulatory certainty has prompted a response from the XRP community. The Securities Clarity Act was presented in May by crypto-supporting congressman Tom Emmer and congressman Darren Soto.
Sen. Emmer describes the bill’s components as providing market confidence for innovators, defining clear jurisdictional limits for regulators, and clarifying the legal categorization of digital assets.
He goes on to say that without a distinction between the asset and the securities contract, token projects that solicit money to fund development are unable to depart the securities framework once the project is decentralised, which limits the project’s value and ultimately harms token holders.
The congressman continued by saying that the Securities Clarity Act amends the existing securities law to include a crucial term, “investment contract asset,” enabling cryptocurrency projects to reach their full potential while remaining compliant and enabling the United States to compete internationally in the upcoming iteration of the internet.
The pro-XRP attorney Jeremy Hogan in particular took notice of this and remarked on the bill on Twitter.
John Deaton, the creator of CryptoLaw, agreed with Perry Boring, CEO and founder of the Digital Chamber, who called the Securities Clarity Act “silver bullet legislation for digital assets” if it were to pass.
A hearing on “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets” will be held by the House Committee on Agriculture on Tuesday, June 6, 2023, starting at 10 a.m.
This, ideally, kicks off the conversation on the laws for cryptocurrencies’ market structure that is desperately needed. Paul Grewal, a legal representative for Coinbase, says he will propose a market regulation bill during the hearing, which he feels will be a crucial chance for all sides to discuss and choose a course of action.
