US Congress To Exempt Crypto From Securities Regulations

US Congress to exempt crypto from securities regulations as the Rep Warren Davidson of Ohio brought up the Token Taxonomy Act to the House. The new bill will make crypto-assets and other digital assets exempt from the securities laws and this is the third time we seen the congressmen pass this bill so let’s see more in our latest crypto regulation news below.

The discussions on the regulation of crypto assets are not something new, as a month ago, the SEC released a new compliance notice with a framework for potential regulations in the industry but it has since become a hot topic in the traditional financial sector. Goldman Sachs announced that they were rebooting a crypto asset trading desk as well and will offer BTC-based futures and non-deliverable forward contracts so the US congress to exempt crypto is a logical next step.

Thank you to @RepDarrenSoto, @RepJoshG, @RepTedBudd, & @RepScottPerry for cosponsoring my #TokenTaxonomyAct. It’s time for Congress to give this emerging industry the clarity it needs to continue changing the world with #blockchain. https://t.co/fmAfeKQXGN

— Warren Davidson (@WarrenDavidson) March 10, 2021

Bill H.R 2144 reads that it will “amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to exclude digital tokens from the definition of a security.” The bill will change the entire tax structure as well for cryptocurrneices which could incentivize investing in digital assets over the traditional ones. Congressman Darren Soto said that the new bill will “add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States.” Soto is a well-known advocate for crypto and started accepting campaign donations in BTC back in September:

 “This is an important first-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.”

There could be some implications of passing the bill as many of the US states already started their own definitions on a digital token. For example, Wyoming enacted over 13 laws for example, and they have their own legal framework around blockchain technology. The Token Taxonomy Act will be federally mandated but it could end up contradicting state levels laws that are in place

As recently reported, The bipartisan group of Pro-blockchain congressmen, wrote a letter to Jay Clayton, the SEC Chairman, citing lack of guidance from the regulator which only left the crypto-broker dealers in a state of limbo. They demand more clarity around the broker-dealer applications to FINRA. The group of nine congressmen signed the letter to SEC’s Chairman and asked for more clarity for the companies in the crypto space.