U.S Congressman Warren Davidson has raised hopes of crypto regulations coming to the U.S after making a promise to introduce such a framework.
He was speaking to the audience at the ongoing Blockchain Solutions Conference and reportedly said that he would introduce a bill that makes cryptocurrencies an “asset class.” In addition, he said that the framework would also serve the purpose of declassifying ICO tokens as “securities”; a definition which the U.S. SEC has given the fundraising model.
The Congressman did not give a timeline on when he plans to introduce the proposed regulations; however, given his previous actions in defense of cryptocurrencies, it is more likely that he will stick to his word.
In September, Davidson hosted a conference which involved 45 crypto industry participants, with the focus on what regulatory rules would be fitting for the space. There have also been earlier comments by a Federal representative spokesman that he was working on a regulation that will allow ICO startups to sidestep securities law.
Bringing Clarity To Crypto Regulation In The U.S.
Evidence points to the fact that there is disparity among U.S regulators on how cryptocurrencies or ICO tokens are to be classified.
For instance, the Securities and Exchanges Commision (SEC) prefers to label almost ICO tokens as “securities,” while the agency’s chairman Jay Clayton, said in a recent report that Bitcoin is not a “security.” This seemingly unclear understanding has compelled the regulators to charge several ICO operators for issuing unregistered securities.
Moving away from the SEC, the U.S Commodity and Futures Trading Commission (CFTC) classifies Bitcoin as money and are on this basis likely to grant proposed Bitcoin Futures Contract by Bakkt and Nasdaq.
The Office of Foreign Assets Control (OFAC) also adopts a similar stance, and as such have made it a duty to blacklist crypto wallets being used to carry out cross-border crimes. Conclusively, the Internal Revenue Service (IRS) has classified cryptocurrencies as property and collect capital gains tax from those who make profits from crypto trading.
At this point, it is clear to see why a Federal regulatory framework being proposed by Congressman Warren Davidson is needed. Its existence will not only bring organizational harmony across the various authorities but will also create a safe environment for the country’s crypto industry to thrive.