All U.S based cryptocurrency projects planning token sales in the future have some good news to cheer on for the first time in a while.
On April 9, U.S. Representative Warren Davidson reintroduced the Token Taxonomy Act, roughly three months after the bill first got to the Congress in December. As Coinfomania reported then, the bill had a simple objective — to exempt some ICO tokens from the U.S securities law and provide the regulatory clarity that crypto projects.
Interestingly, the reintroduced bill has incorporated new changes that can only make one wonder why it will not fail to gain approval when lawmakers finally get to decide on whether it should be passed into law or not.
New Changes to the Token Taxonomy Act (now Digital Taxonomy Act 2019)
First, it is worth mentioning that when the bill was introduced in December, it was only sponsored by two U.S Reps, Warren Davison and Darren Soto. The newly revised edition, however, is sponsored by three new Reps, Josh Gottheimer, Tedd Budd, Scott Perry, and presidential candidate, Tulsi Gabbard.
Secondly, the revised bill recommends that the U.S Federal Trade Commission (FTC) should receive an allocation of $25 million to help fight the prevalence of cryptocurrency crime, a condition that has been a source of concern for U.S regulators. Undoubtedly, this provision shows that the lawmakers have investor protection at heart while composing the bill.
Lastly and most importantly, the bill provides an updated definition for digital tokens to include latest changes around the technology. This move takes on increased significance because the U.S SEC’s Fintech Division recently released a guide on ICO tokens.
Speaking upon the reintroduction of the bill, Rep. Davison reportedly noted,
“If the bill gets approved from Congress and signed into law, it would send a powerful message to innovators that the U.S. is the best destination for blockchain technology.”
U.S based projects would now have renewed hope that a move is underway to clear the regulatory waters and possibly allow them to compete with their counterparts from other nations who seem to be leading the way right now.