In what could prove to be a major step towards the mass adoption of blockchain technology and cryptocurrencies, the U.S. Congress introduced two bills aimed at supporting the use of blockchain technology. Token Taxonomy Act of 2019 (H.R. 2144) and the Digital Taxonomy Act (H.R. 2154) were introduced this week by Representatives Warren Davidson (R-OH-08) and Darren Soto (D-FL-09).
Proud to introduce the Digital Taxonomy Act & Token Taxonomy Act with @WarrenDavidson to establish jurisdictions & definitions for #cryptocurrency. These bills encourage certainty and growth for this exciting new market! #Blockchain https://t.co/LMC3gKzrtH
— US Rep. Darren Soto (@RepDarrenSoto) 10 апреля 2019 г.
The revised version of the Token Taxonomy Act, first introduced in 2018, aims to exempt digital tokens from the legal definition of security. Its sponsor, Representative Davidson, said the bill aims to “clarify the numerous conflicting state initiatives and regulatory rulings, and [a] patchwork of judicial decisions, that have clouded certainty for entrepreneurs and businesses that use blockchain technology.”
If passed, the two above-mentioned bills would amend the Securities Act of 1933 and the Securities Exchange Act of 1940. They would also clarify roles and jurisdiction of regulatory bodies, such as the Federal Trade Commission (FTC) and the Commodity Futures Trading Commission (CFTC).
“As blockchain technology continues to emerge, it is clear that there must be a framework in place that not only provides a much clearer path forward for open blockchain projects, but also will establish the United States as a leading force in this space,” added Congressman Josh Gottheimer, a co-sponsor of the act.
On the other hand, the Digital Taxonomy Act seeks to sanction funds in the amount of $25 million to prevent fraudulent cryptocurrency and blockchain projects. The bill also places great focus on protection of customers while it supports United States to remain a global leader in emerging technologies.
“After months of public input, our Token Taxonomy Act and the Digital Taxonomy Act add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States. This is an important first-step to promoting innovation and maximizing the potential of virtual currencies for the U.S. economy, all while protecting customers and the financial well-being of investors,” said Congressman Darren Soto in a statement.
Efforts of Representatives Soto and Davidson have been praised not only by crypto and blockchain enthusiasts but also from the wider public, all due to bipartisan efforts to improve the legal framework.