A bill that seeks to exclude digital currencies from being defined as securities has been reintroduced in the U.S. Congress. The Token Taxonomy Act would also exempt swaps between digital currencies from taxation as well as change the tax structure for digital currencies in an individual retirement account.
Rep. Warren Davidson (R-Ohio) first introduced the bill in 2018. After it failed to sail through Congress, he made some minor tweaks before reintroducing it in 2019, but failed to pass. The lawmaker is now reintroducing the bill for a third time.
Thank you to @RepDarrenSoto, @RepJoshG, @RepTedBudd, & @RepScottPerry for cosponsoring my #TokenTaxonomyAct. It’s time for Congress to give this emerging industry the clarity it needs to continue changing the world with #blockchain. https://t.co/fmAfeKQXGN
— Warren Davidson (@WarrenDavidson) March 10, 2021
In a statement by his office, Davidson stated he believes the bill will provide much-needed clarity on for the U.S. blockchain ecosystem. The current regulatory framework in the U.S. is creating confusion and hostility towards the industry, he stated.
“Without a workable federal regulatory structure, many business and entrepreneurs are taking their businesses overseas where clearer and friendlier laws have established thriving blockchain economies,” the statement reads.
Florida Rep. Darren Soto is one of the legislators sponsoring the bill. Soto was one of the guest speakers at CoinGeek Live where he talked about the need to find a balance between regulations and innovation.
Soto remarked, “It is time for the United States to step up and lead in blockchain technology. 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.”
North Carolina Rep. Ted Budd, Pennsylvania Rep. Scott Perry and New Jersey Rep. Josh Gottheimer also cosponsor the bill.
The Blockchain Association, a nonpartisan organization that promotes positive public policy for the industry endorses the bill. The Association has in the past criticized the SEC over its handling of the industry.
“It’s our belief that SEC has failed to provide the certainty that was required to spur continued investment and innovation in this technology. The Token Taxonomy Act would eliminate this uncertainty,” the Association stated in a blog post.
It added, “The bill is a crucial step forward towards a regulatory environment that will allow the U.S. to be competitive, especially against those international jurisdictions that are increasingly crypto-friendly.”
See also: Rep. Patrick McHenry discusses “Blockchain Policy Matters” with Bitcoin Association’s Jimmy Nguyen
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