Two U.S. House of Representatives members are going to tackle the SEC with the introduction of the “Token Taxonomy Act” which would exempt some digital assets and cryptocurrencies from federal securities laws. Well, Rep. Warren Davidson and Rep. Darren Soto are either delusional, high on holiday spirit (or something) or just plain crazy (uh, you can be all three at one time), BUT they are certainly visionary. Their bill, introduced last week, is the first positive move to actually define a new asset class and usher in modern regulations which are badly needed. Obviously the Securities Act of 1933 and the Securities Exchange Act of 1934 are outdated (like, 80 years old) and certainly are not appropriate for cryptos or digital assets. Now, if those Reps. can get the SEC to relinquish some power……………….., they get my vote for any Presidential ambitions. Read more about the “Token Taxonomy Act” below.
(Bill Taylor/Fintek Capital)
“Two members of the U.S. House of Representatives are seeking to exempt cryptocurrencies and certain other digital assets from federal securities laws.
The “Token Taxonomy Act” was introduced Thursday by Reps. Warren Davidson and Darren Soto, a move that comes months after a roundtable in Washington, D.C. that sought input about regulatory measures for the industry. According to the text, the bill – among other items – seeks to exclude “digital tokens” from being defined as securities, amending both the Securities Act of 1933 and the Securities Exchange Act of 1934.
That definition has several components, all of which center around a degree of decentralization in which no one person or entity has control over an asset’s development or operation. This ostensibly would clear the way for cryptocurrencies that don’t have a central controller to be spared a securities designation.
The bill defines “digital tokens” as “digital units created… in response to the verification or collection of proposed transactions” (mining, basically) or “as an initial allocation of digital units that will otherwise be created” (as in a pre-mine). These tokens must be governed by “rules for the digital unit’s creation and supply that cannot be altered by a single person or group of persons under common control.”…“