Unchained The Lummis/Gillibrand Crypto Bill: Is the 'Ancillary Token' Approach the Best Way? - Ep. 361
Jun 10, 2022
Lewis Cohen, lead attorney at DLx Law LLC, shares his insights on the Lummis-Gillibrand Responsible Financial Innovation Act. He highlights the bill's innovative definition of 'ancillary assets' and its unique split oversight between the CFTC and SEC. Cohen tackles criticisms of the ancillary approach and discusses the implications for digital asset regulation, investor protection, and the potential impact on innovation. He also addresses the future of stablecoins and DAOs, underscoring the need for careful legislative balance in this rapidly evolving landscape.
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Ancillary Assets
- The Lummis-Gillibrand bill defines "ancillary assets" to clarify existing securities law.
- It aims to balance regulation with innovation in digital assets.
Complexity and SEC Power
- J.W. Verret's critique highlights the bill's complexity and potential for SEC overreach. Cohen argues the bill offers a balanced approach, acknowledging the complicated nature of the issue.
Safe Harbor Proposal
- Hester Peirce's safe harbor proposal suggests a three-year decentralization period. Cohen rejects the "morphing concept" and argues against special exemptions for crypto.