As we noted following the earlier release, the bill proposes to exempt some cryptocurrencies from the U.S securities law which prominently hinges on the Howey Test and classifies almost all ICO tokens as securities.
If the Congress approves the newly reintroduced bill, it will serve as an amendment to the existing securities laws namely the Securities Act of 1933 and the Securities Exchange Act of 1940.
Also, according to Rep Warren Davidson, it will finally “send a powerful message” to global innovators that the U.S is the ideal destination for developers working on blockchain-based applications.
The bill is now not only backed by Rep Warren Davidson and Darren Soto as in December. Reps. Josh Gottheimer, Tedd Budd, Scott Perry, and Presidential aspirant Tulsi Gabbard have added their names.
New Token Taxonomy Act Features Amendments
Given that a lot has happened since the bill reached the floor of the Congress, the newly proposed Token Taxonomy Act features some prominent changes.
First, it features an improved definition for digital tokens to reflect the fact that it would be too early to rule changes on how the new invention functions. Also, the lawmakers have improved sections on consumer protection to ensure that the new bill doesn’t conflict with existing U.S State laws.
On what has happened since the Token Taxonomy Act was introduced, we reported last week that the U.S SEC’s Fintech group released a not-so-clear guideline on when an ICO token could count as security.
Hopefully, the reintroduction of the TTA will open the door to the regulatory certainty that U.S based crypto startups want. Now the bill would have to meet the favor of other Congress members with the first hurdle already out of the way.
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