Token Taxonomy Act Gets Reintroduced In The U. S. House of Representatives

Last December, we had reported that Token Taxonomy Act, H.R. 7356 Promises To Keep SEC Away from ICOs. It looks like that act has made a resurgence in the US. House of Representatives, after some legislators decided to reintroduce that act.

The bill deals with cryptocurrencies, and it recommends that crypto should not be classified as a security. It was initially proposed last December by Reps. Warren Davidson (R) and Darren Soto (D). The bill intends to amend Securities Act of 1933 and the Securities Act of 1934, thereby ensuring that digital currencies are not considered as securities.

In a press release, the legislators let us know that this current version of the bill is not completely identical to the one introduced back in December 2018. One highlight is bringing more clarity regarding the jurisdictions of the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC).

The bill additonally states that a preemption provisions was inserted into the Act that would replace “heavy-handed” regulations like New York’s “onerous” BitLicense. It also includes the introduction of more concrete regulations for businesses and regulators in the U.S. blockchain industry, and sets up regulatory groundwork for intervening and resolving any conflict that might arise.

Rep. Soto said, “it is time for the United States to step up and lead in blockchain technology,” and 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.”

This bill, if passed, could mean more clarity in the US, regarding laws and regulations surrounding the cryptocurrency industry.