Congressman Warren Davidson has recently said that he has a plan to reintroduce a bill to the US House of Representatives in a couple of weeks that seeks to distinguish cryptocurrency from securities. The bipartisan proposal would specify certain types of crypto coins as an asset class of their own.
Given the name Token Taxonomy Act, the bill is a response to all of the cryptocurrency startups leaving the United States due to regulations in search for a much more blockchain friendly territory and crypto havens.
The bill was originally introduced during last December and will be reintroduced during the 116th Congress, which started during January 3rd. After its reintroduction, it’ll go to the Financial Services of Committee for review. Davidson commented to Forbes that he expects the bill to successfully pass, but isn’t able to give the exact date on when this will happen.
During the previous year, the US Securities and Exchange Commission rejected multiple Bitcoin ETF Proposals, and US regulators have made it quite difficult for local tech startups to launch their own ICOs.
Because of this, many blockchain startups have decided to relocate their business to countries such as Switzerland where regulators have declared that not all Initial Coin Offerings (ICOs) are securities. Exemption from securities laws has lead to a lot of freedom to acquire funding, leading to Switzerland garnering more blockchain startups than the US.
A Republican by the name of Davidson along with a Democrat, Darren Soto, plans to introduce the bill together as they wish to support blockchain innovation in the US and stabilize the cryptocurrency market. He’s quite confident the bill will pass with no problems at all.