US Legislators Reintroduce Token Taxonomy Act to Exclude Crypto From Securities Laws

Representatives in the United States House of Representatives have reintroduced the Token Taxonomy Act, according to a press release shared with Cointelegraph on April 9. The bill would exclude cryptocurrency from being classified as a security.

The bill was initially proposed last December by Reps. Warren Davidson (R) and Darren Soto (D), and seeks to exclude digital currencies from being defined as securities by amending the Securities Act of 1933 and the Securities Act of 1934.

The press release notes that the recent iteration of the bill will differ from that which was introduced last year. Notably, it clarifies the jurisdictions of the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC).  It also states that a preemption provisions was included the Act that would supercede “heavy-handed” regulations like New York’s “onerous” BitLicense.

The act also pursues the introduction of regulatory certainty for businesses and regulators in the U.S. blockchain industry, as well as clarifying conflicting state initiatives and regulatory rulings that have confused the issue.

The announcement calls attention to the growing strength of digital asset markets and the blockchain industry both in Europe and China, and states that the Act is necessary in order to keep the U.S. competitive in the global market.

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.”

As Cointelegraph reported last month, the number of lobbies working on blockchain technology issues in Washington D.C. tripled in 2018, reaching 33 projects in the fourth quarter of 2018 compared to 12 in the same period of 2017. Jerry Brito — executive director at the non-profit organization Coin Center that works with Davidson and Soto — reportedly suggested that the growth is driven by securities regulation.