On 4 April, the US House Representatives, namely, Warren Davidson and Darren Soto brought back the Token Taxonomy Act which was announced last year and sought to rule out cryptocurrency from Security Law.
Token Taxonomy Act Bill Background
The Act was written in the efforts to provide regulatory certainty of the US market which was initially clouded and drove entrepreneurs as well as investors to search for a better alternative. The reformed policy has also taken into consideration of changing technology and has thus clarified the definition of digital token to be more inclusive.
Cryptocurrency May Not fall Under Security Law
The newest change in the bill, after the original was released in December last year, upholds that cryptocurrency would not be classified as a security, under security law. This bill proposes the amendment of Security Acts of 1933 and 1934. The jurisdiction of FTC (Federal Trade Commission) and CFTC (Commodity future Trade Commission) were also revised. This Act is a strategy for the upliftment of the US in the competitive market, primarily to remain at par with China and Europe on a global level.
Warren Davidson, the author representative, stated ‘The Token Taxonomy Act is the key to unlocking blockchain technology in America.’ He further noted that without the Act, the US is surrendering its innovative origins and ownership of the digital economy to Europe and Asia.
Representative Soto adds to his partner’s comment stating ‘This is an important step to promoting innovation and maximizing the potential of virtual currencies for the US economy, all while protecting customers and the financial well-being of investors. The strong support for this bipartisan legislation from U.S. businesses and stakeholders is a clear indication that our friendly, light-regulatory proposal will propel the United States to be at the forefront of this industry.’ The Token Taxonomy Act, as confirmed by the representatives, has gained bipartisan support, thus garnering a positive response from the state and opposition likewise.
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