Jake Chervinsky, a crypto attorney, is not believing any rumours that present the possibility of a bill being introduced to exempt ICO’s and cryptocurrencies from US securities laws that would be approved by the Congress. His reasoning: the political instability in Washington.
I don't know if there's any validity to the rumor that the Token Taxonomy Act will be reintroduced in Congress on February 14, but even if true, there will be months or years of Committee hearings & revisions before the bill could even possibly see a vote. Don't hold your breath.
— Jake Chervinsky (@jchervinsky) January 26, 2019
In-House Crypto Regulations
The Token Taxonomy Act., introduced in December 2018 by Republican Congressman Warren Davidson and Democrat Rep. Darren Soto, would amend the Securities Exchange Act to specifically exclude crypto from securities laws.
“This bipartisan legislation draws a bright line for businesses and regulators by defining a “digital token,” and clarifies that securities laws do not apply to companies that use blockchain once they reach their goal of becoming a functional network.”
Both Davidson and Soto are of the opinion that the legislation, if approved, would provide clarity over the regulations to be imposed on the functioning of the crypto market. It would also ensure that US does not fall behind in competition during the crypto boom.
Avoid Regulations That Inhibit Innovation
Rep. Warren Davidson in a speech in December 2018 said:
“In the early days of the Internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. Our intent is to achieve a similar win for America’s economy and for American leadership in this innovative space.”
To explain its necessity, he said:
“This bill provides the certainty American markets need to compete with Singapore, Switzerland, and others who are aggressively growing their blockchain economies.”
The Rise of Crypto as a Power Centre
The introduction of three bills by Republican Congressman Tom Emmer in September 2018 shows the development of cryptocurrencies and blockchain could play a huge role in politics. The three bills are:
• Resolution Supporting Digital Currencies and Blockchain Technology.
• Blockchain Regulatory Certainty Act.
• Safe Harbor for Taxpayers with Forked Assets Act.
Emmer, in his statement, said:-
“This is an exciting time for blockchain technology and cryptocurrencies. Legislators should be embracing emerging technologies and providing a clear regulatory system that allows them to flourish in the United States.”