XRP Community Responds to Securities Clarity Act

The XRP community has responded to the latest initiative to provide the cryptocurrency industry with much-needed regulatory clarity.

In May, Congressman Tom Emmer and Representative Darren Soto introduced the Securities Clarity Act.

Sen. Emmer explains the bill’s provisions by stating that it clarifies the regulatory classification of digital assets, provides market certainty for innovators, and establishes clear regulatory jurisdictional boundaries.

Without a distinction between the asset and the securities contract, he explains, token projects that raise funds to support development cannot abandon the securities framework once the project is decentralized, which hinders the project’s utility and ultimately harms token holders.

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 the United States can compete globally in the next iteration of the internet.

This drew the attention of the XRP community, including pro-XRP attorney Jeremy Hogan, who tweeted about the bill.

CryptoLaw founder John Deaton echoed the sentiments of Digital Chamber founder and chief executive officer Perry Boring, who characterized the Securities Clarity Act as “silver bullet legislation for digital assets” if enacted.

The House Committee on Agriculture will hold a hearing on “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets” on Tuesday, June 6, 2023, at 10 a.m.

This hopefully initiates a discussion about the imperative need for cryptocurrency market structure legislation.

Paul Grewal, legal counsel for Coinbase, will present a market regulation measure at the hearing, which he believes will be a crucial opportunity for both parties to discuss and find a way forward.