Crypto friendly and Bitcoin bull, US Representative of Ohio, Warren Davidson recently announced a bill that will create another asset class and in turn regulate cryptos and Initial Coin Offerings (ICOs) and have them exempt from the securities law.
Getting Tokenized Assets Exempt from Securities Law
According to the local Ohio news source, at the four-day blockchain event in Cleveland, US Representative Warren Davidson introduced a bill and discussed his plans to regulate cryptos and ICOs through the federal government. This move would take bitcoin and cryptocurrencies a big step towards clarity to US crypto regulation and getting them legalized.
This plan could create an asset class for digital currencies. This, in turn, would prevent them from being classified as securities.
Davidson didn’t reveal the details but the proposed legislation will be introduced “soon”, who said at the event,
“What this does for entrepreneurs is it gives people an ability to raise capital a different way.”
Security Exchange Commission (SEC) is currently trying to crack down on and curb the fraudulent offerings in the market. Meanwhile, SEC is setting up a new division to work with financial tech companies planning to launch ICOs.
“What this does for entrepreneurs is it gives people an ability to raise capital a different way,” said Davidson.
In September, Davidson hosted a roundtable to address the urgency to regulate ICO market where he shared what is on his plan,
“Tapping the potential ICO’s offer requires a law that provides a simple but clear ‘light-touch’ approach. With a thoughtful, bipartisan approach that protects consumers, advances free market solutions, and defines safe-harbors for the earliest stage innovators, Congress can send a powerful message around the world that the U.S. is the best destination for ICO markets.”
Cleveland.com also shared one of the main points of focus in the conference has been how blockchain can be used in government. At present, different government agencies are classifying cryptos differently. Commodity Futures Trading Commission (CFTC) treats them as commodities of currencies while for SEC they are still unclear but for the most part, considers them as securities. Meanwhile, Internal Revenue Service has tagged cryptos as property for the tax purpose.