The XRP community has reacted to the latest move to provide much-needed regulatory clarity to the crypto industry. In May, pro-crypto congressman Tom Emmer introduced the Securities Clarity Act with U.S. Representative Darren Soto.
Sen. Emmer explains what the bill comprises by saying it clarifies the regulatory classification of digital assets, provides market certainty for innovators and gives clear jurisdictional boundaries for regulators.
Without a difference between the asset and the securities contract, he continues, token projects that raise funds to support development are unable to exit the securities framework once the project is decentralized, which hinders the utility of the project and ultimately hurts token holders.
The Securities Clarity Act.
Also known as the:
“XRP holder protecting/Coinbase & Binance relieving/Crypto start-up protecting/USA Pro-innovation/Hinman speech codifying/Stick it to the SEC/ ACT.”
For short. https://t.co/31gn4u7mOi pic.twitter.com/akNNXEJleb
— Jeremy Hogan (@attorneyjeremy1) June 2, 2023
The congressman added that the Securities Clarity Act inserts a key term, “investment contract asset,” into the existing securities law so that cryptocurrency projects can realize their full potential in a compliant manner and allow the United States to compete internationally in the upcoming iteration of the internet.
This caught the attention of the XRP community, in particular pro-XRP lawyer Jeremy Hogan, who commented on the bill on Twitter.
CryptoLaw founder John Deaton shared the opinion of Digital Chamber founder and CEO Perry Boring, who described the Securities Clarity Act as “silver bullet legislation for digital assets” if passed.
In related news, the House Committee on Agriculture will hold a hearing titled “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets” on Tuesday, June 6, 2023, at 10 a.m.
Thanks to @PatrickMcHenry and @CongressmanGT for starting the conversation on much-needed market structure legislation for crypto. Next week’s House Ag Committee hearing will be an important opportunity for both sides of the aisle to discuss the bill and find a path forward, and… https://t.co/oewGIas4cy
— Kara Calvert 🛡️ (@karacalvert) June 2, 2023
This hopefully begins the discussion about the urgently required market structure legislation for cryptocurrencies. Coinbase legal officer Paul Grewal says he will present a market regulation bill at the hearing, which he believes will be an important opportunity for both parties to discuss and find a path forward.