US Congress Reintroduces Bill That Excludes Digital Currency From Securities Law

The Token Taxonomy Act, drafted by Rep. Warren Davidson (R-Ohio), has been reintroduced into Congress.  It is a bill that seeks to exclude digital currencies from being defined as securities.

The Concept Behind This Legislation

• Davidson stated he believes the bill will provide much-needed clarity on for the U.S. blockchain ecosystem.
• The current regulatory framework in the U.S. is creating confusion and hostility towards the industry, he stated.
• “Without a workable federal regulatory structure, many business and entrepreneurs are taking their businesses overseas where clearer and friendlier laws have established thriving blockchain economies,” a statement he issued reads.
• Florida Rep. Darren Soto, who has appeared on CoinGeek Live panels, is one of the legislators sponsoring the bill and says he believes the US must step up and start leading in blockchain technology.
• "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.”
• North Carolina Rep. Ted Budd, Pennsylvania Rep. Scott Perry and New Jersey Rep. Josh Gottheimer also cosponsor the bill.

The measure also seeks to exempt swaps between digital currencies from taxation as well as change the tax structure for digital currencies in an individual retirement account.

- Aaron Goldstein, Gambling911.com