The United States House of Representatives have recently reintroduced the Token Taxonomy Act – which is basically a bill that aims to exclude cryptocurrency from being classified as a security.
According to a press release, the crypto news today show that the bill initially proposed last December by the Representatives Warren Davidson (R) and Darren Soto (D) and aims to exclude digital currencies from being defined as securities – by simply amending the existing Securities Act of 1933 and the Securities Act of 1934.
The release also notes that the change in the bill will differ from the one which was introduced last year. It also clarifies the jurisdictions of the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC), stating that a preemption provisions was included in the Act that would supposedly supercede the “heavy-handed” regulations like the New York BitLicense, which we covered in another post.
With this act, the introduction of regulatory certainty for businesses and regulators in the US blockchain industry is also pushed through – as well as clarifying the conflicting state initiatives and regulatory rulings that have confused the issue.
On a side note, this announcement also calls for attention on the growing strength of digital asset markets and the blockchain industry in Europe and China – stating that the Act is necessary in order to keep the United States competitive in the global market.
According to Representative Soto, “it is about time for the US to step up and lead in blockchain technology.” She also added:
“After months of public input, our Token Taxonomy Act and the Digital Taxonomy Act add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States. This is an important step to promoting innovation and maximizing the potential of virtual currencies for the U.S. economy, all while protecting customers and the financial well-being of investors.”
According to reports from last month, there is a number of lobbies working on similar blockchain technology issues, and the Representatives have already suggested that this growth is mostly driven by securities regulation.
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