Token Taxonomy Act, the bill which was introduced in the year 2018 for the first time to remove crypto from US securities laws- has again reintroduced with upgraded version and better clarity on Tuesday – aiming Congress to approve and signed into law.
Original Version of the Bill
The continuous debate on crypto across United state occurs due to the country’s various ways to govern the crypto aspect. However, the earlier bill which was submitted last year demands to exempt ‘certain tokens and crypto assets from federal securities laws’ – following which, it aims at law to recognize the free flow of crypto throughout the region.
As Coingape reported ‘Token Taxonomy Act or TTA) was first introduced by Reps. Davidson and Darren Soto. However, the case is still not clear but stand at the front of many crypto enthusiasts and lawmakers.
On one hand US SEC (securities and exchange commission) has already given ‘staff-level guidance’ that speaks how it treats token sales but it remains unclear how SEC treats those crypto tokens that haven’t been used for crowdfunding or token sale campaign.
Concerning the context of staff-level guidance, Kristin Smith, acting head of Blockchain Association says;
“In light of the recent SEC staff guidance, the open blockchain industry needs regulatory clarity more than ever,” she adds that “We believe that blockchain technology has tremendous potential and that we need smart, simple, and supportive legislation to make sure that the United States continues to be a leader in this ecosystem. We are grateful for the bill’s sponsors for their continued support for this vital technology.”
Bill Gets New Look
According to reports and twitter handle of US lawyer ‘Jake ‘, Token Taxonomy Act has been resubmitted by US representative Warren Davidson on April 08, 2019.
Per the reports, the revised bill represented in front of ‘Congress’, if approved, will bring ‘a power message’ as the US becomes the hottest destination ‘for blockchain technology’.
The new version of Token Taxonomy Act conveys a clear definition of what digital tokens are, other provisions being involved are ‘strengthening consumer protection and considering other state laws ‘in mildly’ which would otherwise essentially prohibited. Gabriel Shapiro, an attorney with crypto-focused DLx Law says that TTA would essentially prohibit states
“from regulating any aspect of digital token sales other than full-on fraud, “To call this an insult to states’ rights would be putting it very mildly.”
Democratic presidential candidate and also crypto hodler, Tulsi Gabbard further adds that;
“With the introduction of the Token Taxonomy Act today, Congress has the opportunity to help ensure that these efforts not only protect investors but also promote innovation as well as new business opportunities that allow more diverse districts like mine to have greater security when participating in the digital economy.”
While revised TTA bill looks pretty cool, Wall Street veteran Caitlin Long believes it proposes only 2 good things. You can read her complete insights on revised TTA bill here
So readers, what do you think about the revised TTA bill? share your thoughts with us.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com