A new bill to exempt crypto from securities laws got recently reintroduced in Congress and it seems that Warren Davidson who initially sponsored the bill in 2018 in 2019, is sponsoring it again as we can see in our latest crypto news today.
In the so-called new bill to exempt crypto from securities laws, nothing actually has been changed. Representative Warren Davidson reintroduced the Token Taxonomy Act which is a bill that will make certain cryptocurrencies and other digital assets exempt from US Securities laws. This marks the third time that the Ohio congressman is taking the bill to Congress. He first introduced it in 2018 at the end of the legislative session before reintroducing it again with slight changes in 2019. The legislation was never scheduled for a vote in the House.
“Thank you to @RepDarrenSoto, @RepJoshG, @RepTedBudd, & @RepScottPerry for cosponsoring my #TokenTaxonomyAct. It’s time for Congress to give this emerging industry the clarity it needs to continue changing the world with #blockchain. https://t.co/fmAfeKQXGN
— Warren Davidson (@WarrenDavidson) March 10, 2021”
H.R 1628 would amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to exclude digital tokens from the definition of a security and will also make crypto-to-crypto transfers tax-exempt by changing the tax structure for cryptocurrencies that are held in the retirements accounts. Congressman Darren Sotto as a co-sponsor of the bill said it would add “critical definition and jurisdiction to create certainty for a strong digital asset market in the United States.”
As per a press release, it may be the perfect time to establish a new regulatory framework for cryptocurrencies in the US because the industry players believe that something like this is lacking. However, the bill itself is endorsed by the nonpartisan Blockchain Association and could produce a wrong king of regulatory clarity because the federal definition of a digital token could run into opposition from the states that already crated new rules for crypto assets. according to Gabriel Shapiro, it will make it quite hard for states to regulate aspects of digital token sales:
“To call this an insult to states’ rights would be putting it very mildly.
The bill was referred to the House Financial Services and the House Ways and Means Committee already.
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