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US Congressmen’s Attempt of Token Taxonomy Act to Exempt Cryptocurrency from Security Laws

By Chris Torres | April 13, 2019
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US Congressmen’s Attempt of Token Taxonomy Act to Exempt Cryptocurrency from Security Laws

According to a press release on April 9th, the officials of the US House of Representatives introduced the Token Taxonomy Act for the 2nd time, in an attempt to exempt cryptocurrencies from current US security legislation.

The original version of the Token Taxonomy Act, proposed in December 2018 by Reps. Warren Davidson and Darren Soto, aims to amend the Securities Act of 1933 and the Securities Act of 1934, thus to grant further clarity to the standing of some specific tokens and digital assets under federal securities law.

The newly reintroduced bill, however, is reported to have some changes compared to the one last year. This new act will redefine the actual legal power of the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC). Furthermore, a new provision that would prevent any US states of authorities creating “heavy-handed” regulations, such as the BitLicense of New York city.

The new version of the bill also seeks to help regulators and businesses apply the law and operate in the US crypto market, together with providing final clarification to some preceded regulatory rules and initiatives, which may have caused confusion in the US blockchain industry.

Congressman Soto also added that it is high time the US “step up” and prove itself to be the best place for blockchain technology to bloom.

Earlier this month, TheCryptoSight reported that global blockchain market is going to hit $2.9 billion in 2019, with a CAGR of 76% between 2018 and 2022. By geographical region, the US is expected to see the largest blockchain spending this year at $1.1 billion.

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