The act known as the token taxonomy act has been reintroduced by the legislators from the House of Representatives from the United States. This is according to a press statement that was released to the public on the 9th of April. However, there is something extraordinary about this new bill. It will now exclude the crypto from being grouped as a security.
About The Bill
It is not the first time the bill is being proposed. It had earlier been proposed by two representatives from the US House of Representatives last December. They were Darren Soto of the Democrat and Warren Davidson of the Republican.
The bill seeks to exclude the virtual coins from being classified as securities, as it has been in the past. This will be done by amending some parts of the Securities Act. The parts that would be amended are the Securities Act of 1934 as well as the Securities Act of 1933.
The press statement notes that the latest iteration of the bill will differ much from the one that was released last year.
The List Of Other Amendments
There are certain amendments that have been done to the current one. The new proposal has notably clarified the Commodity Futures Trading Commission –CFTC’s jurisdictions.
There are also other things that have been included in the new proposal. One of these is the preemption provisions that would tend to supersede some of the heavy-handed regulators. A good example is the BitLicense that had its operations in the city of New York.
Introducing The Regulatory Certainty
The new act also pursues other fundamental things. One of them is the introduction of the regulatory certainty for regulators and businesses in the U.S blockchain market. It also assists in clarifying some of the conflicting state initiatives. In addition to that, it also clarifies the regulatory rulings that have complicated the whole issue.
The announcement basically asks for attention to the growing strength that has been witnessed in both the blockchain market and virtual currency markets. The markets are both in China and Europe. The announcement goes ahead to note that the Act is necessary in order to keep the American competitive in the international market.
The US Should Now Lead The Blockchain Technology
It is now high time that the US should step up and be in the center stage as long as the blockchain technology war is concerned. These were the sentiments by US Representative, Darren Soto. He stated how much time has been spent on public input and now some fruits can be seen.
Both the Digital Taxonomy Act and the Token Taxonomy Act have now added some important jurisdictions and definition. These are done to create certainty for a very strong digital asset market in the entire country. The representative states that this is one of the most important steps in promoting innovation for the US economy. It also assists in maximizing the potentials for the cryptos for the economy of the Unites States.