Token Taxonomy Act Reintroduced

According to a press release issued on April 9, legislators in the United States House of Representatives have reintroduced a bill called the Token Taxonomy Act, in which cryptocurrency tokens are excluded from classification as a security.

A Different Iteration of the Bill

The bill had originally been proposed by Republican Representative Warren Davidson and Democrat Representative Darren Soto in December last year. It sought to exempt certain types of digital currencies from being classified as securities by having the federal Securities Act of 1933 as well as the Securities Exchange Act of 1940 amended.

By doing so, individuals would be able to transact with selected coins more easily, and it would also give US regulators such as the SEC (Securities and Exchange Commission) more clarity on enforcing securities laws with regard to cryptos.

The reintroduced bill, according to the press release, will differ somewhat from the original. Most importantly, the biggest difference in the new bill is that is clarifies jurisdictions for the FTC (Federal Trade Commission) and the CFTC (Commodity Futures Trading Commission).

The press release also stated that a preemptions provision had been included in the new bill that would supersede onerous regulations such as the BitLicense law imposed by New York.

The new Act also focuses on the introduction of certainty in regulations for both regulatory bodies as well as businesses in the Blockchain industry in the US. It also provides clarity about conflicting state-level initiatives and rulings from regulators that have caused confusion in the law.

Leader in Blockchain Technology

The press release further explained how the Blockchain industries and crypto markets in Europe and China were growing in strength. It underlined the necessity of implementing this Act so that the United States could remain competitive in the global market.

According to Representative Soto, it was time for the US to step up and take the lead in the Blockchain technology space.

He said that after months of taking inputs from the public, the Token Taxonomy Act as well as Digital Taxonomy Act added the critical definitions and clarity on jurisdictions that were required for the creation of a strong digital asset space in the US.

Soto stated that this was an important step for the promotion of innovation as well as for maximizing the potential of this market in the country, while also ensuring consumer protection and the financial safety of investors.