US Representative Warren Davidson has for the third time introduced in Congress a bill on token taxonomy—the Token Taxonomy Act. The measure is reported on the House website.
The measure would amend the Securities Exchange Act of 1934 and the Securities Act of 1933. According to Davidson, authorities should give the cryptocurrency industry greater regulatory clarity.
Thank you to @RepDarrenSoto, @RepJoshG, @RepTedBudd, & @RepScottPerry for cosponsoring my #TokenTaxonomyAct. It’s time for Congress to give this emerging industry the clarity it needs to continue changing the world with #blockchain. https://t.co/fmAfeKQXGN
— Warren Davidson (@WarrenDavidson) March 10, 2021
The bill would exclude “digital tokens” from the definition of securities. The authors propose not to tax exchanges of one cryptocurrency for another and conversions to fiat.
Stellar Development Foundation CEO Denelle Dixon welcomed the congressman’s efforts to shape a regulatory framework for the industry.
Great to see the #TokenTaxonomyAct introduced today by @warrendavidson and his colleagues — thank you for leading the way to bring regulatory clarity for digital assets and doing it through close private-public partnership! https://t.co/rU5PCChuPO
— Denelle Dixon (@DenelleDixon) March 10, 2021
Davidson first introduced the bill in 2018. He says the legislation is a crucial element in ensuring the United States’ competitiveness in blockchain technology.
In April 2019, the author of the document resubmitted it for consideration to Congress. The updated version included data on the actions taken by state legislatures in Colorado and Wyoming.
As of February 2021, SEC Commissioner Hester Peirce urged U.S. authorities to move quickly to establish clear regulatory rules for the cryptocurrency industry.
Later, a candidate for the SEC chair, Gary Gensler, described Bitcoin a catalyst for change and said regulation must keep pace with technology.
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