US Lawmakers to Exclude Cryptocurrencies from Securities

US Lawmakers to Exclude Cryptocurrencies from Securities

The “Token Taxonomy Act” has been introduced to the US House of Representatives on Thursday according to the US Congress. The idea is to change a 1933 definition of securities.

Representants Warren Davidson and Darren Soto introduced an ACT “To amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to exclude digital tokens from the definition of a security.”

The Act also looks “to direct the Securities and Exchange Commission to enact certain regulatory changes regarding digital units secured through public key cryptography.”

Also “to adjust taxation of virtual currencies held in individual retirement accounts, to create a tax exemption for exchanges of one virtual currency for another, to create a de minimis exemption from taxation for gains realised from the sale or exchange of virtual currency for other than cash, and for other purposes.”

The amendment would be the base for future actions regarding taxation and the use of crypto assets. At the same time, the Token Taxonomy Act would open the doors for a more natural way to invest in crypto assets such as Bitcoin or Ethereal and the so-called Bitcoin ETF that US regulators have not yet approved.

A new definition of “digital token” by the act that clarifies it is not a security, so it should not be under securities laws. According to the new law, a digital token would be an asset that “has a transaction history that, is recorded in a distributed, digital ledger or digital data structure in which consensus is achieved through a mathematically verifiable process.”

Digital tokens, add the new law, “cannot be materially altered by a single person or group of persons under common control, is capable of being traded or transferred between persons without an intermediate custodian.”

In a statement, Rep. Davidson remembered the early days of the internet, when “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.”

Recently Similar News

cex-promotion exmo-promotion

Latest Guides

Latest News

BitPanda CEOs Win Entrepreneur of the Year Award

Paul Klanschek and Eric Demuth, the two CEOs of BitPanda, have taken home the Entrepreneur of the Year in an event hosting by world-leading accountancy firm, Ernst and Young. The prize follows a very exciting year for the exchange platform. 2019 saw them host the highest ever recorded IEO of their native, BEST token, as […]

22 October, 2019
CFD,Exchange Platforms,Expansion,Trading

Trade.com Expands into UK and Irish Markets

The CFD trading platform, Trade.com yesterday beckoned in a new dawn of operations by setting up shop in the UK and Ireland. The expansion into this new market comes as the platform sets-up shop in one of the financial hubs of the world, London. This will see the CFD platform become more accessible to users […]

22 October, 2019
Binance,Bitcoin Cash,Decentralised,Pegging

Bitcoin Cash to Become Latest Pegged Token On Binance Chain

Following the listing of Bitcoin Cash (BCH) on the Binance DEX, a new token known as BCH-1FD tokens, which is pegged to the value of BCH, will be created on the Binance Chain. This promises to provide users of the Binance DEX with more trading options on the exchange, while maintain they continue to obtain full custody over their […]

21 October, 2019
KuCoin,Pairings,Tron,Updates

KuCoin Adds TRX Trading Market

The expanding cryptocurrency exchange, KuCoin has listed pairings for Tron on their platform which will see them dive develop their operations with Tron. This new trading market will go live later today, October 21st, at 18:00 (UTC+8) with the trading pairs of BTT/TRX and WIN/TRX being added. While trading of TRX on the platform has […]

21 October, 2019
Blockchain,Learn,Malta

The University of Malta To Offer a Masters in Blockchain

It is now possible to get a certified degree in blockchain and distributed ledger technology at the University of Malta. Malta has been recently establishing itself as very much the hub of cryptocurrency in Europe. The small Mediterranean island has been one of the first locations on the continent to provide the infrastructure for the […]

20 October, 2019
cryptocurrency hedge funds,Custodian,Fidelity,Updates

Crypto Custody Services From Fidelity Set to Launch

In a new interview, the CEO of Fidelity Investments has announced the roll-out of their much-anticipated crypto custody service. Speaking to The Financial Times, CEO, Abigail Johnson explained that after year-long preparation it was ready to venture into this new area of cryptocurrency investment. This was described by Johnson as “enterprise-quality custody and trade execution […]

19 October, 2019
BitPanda,Europe,Finance,Payment Solution

You Can Now Send Money & Pay Bills with New BitPanda Pay

The exchange platform, BitPanda, has unveiled a new BitPanda Pay service which will allow you more freedom to use your BitPanda balance in everyday life. BitPanda will allow users to bridge the gap between your holdings in the cryptocurrency world and the financial services you need to take off in the real-world. The new service […]

19 October, 2019
Binance,Futures Trading,Investment,Updates

Binance Futures Increases Leverage to 125x

As of today, traders who use Binance Futures will be able to benefit from the larger Leverage on both margin and trading available on the service. Binance Futures has been up and running for a couple of months now and has so far proven to be a big hit with traders. Owing due to its […]

18 October, 2019