Crypto Experts And US Lawmakers Attempt To Give Definition Of Tokens
More than 45 representatives from cryptocurrency startups and Wall Street based companies discussed tokens regulatory and operating issues and legal framework for ICOs in the United States. The roundtable discussion organized in the Congress building, initiated by a congressman Warren Davidson, was dedicated to cryptocurrency classification and regulation, CoinTelegraph reports.
The event provided an excellent opportunity for crypto industry representatives to express their deep concerns and wishes about government regulation of the cryptocurrency sector. In particular, experts outlined many ambiguities in the regulatory laws concerning ICOs and digital assets.
One of the debating issues was tokens systematization. The participants accentuated that in the US, there are no clear definitions of tokens or ICOs. As such, it poses difficulties to choose and implement proper regulatory standards for the cryptocurrency industry.
Hilary Kivitz, COO at venture capital firm Andreessen Horowitz, posited that tokens can be considered as securities at the initial stages of a fundraising campaign. She highlighted that ICOs should serve the interests of each party involved since tokens are a shared network of incentives.
The head of a blockchain startup Chia Network Ryan Singer also noted the high level of ambiguity in defining of basic concepts of the cryptocurrency industry. He mentioned the issue with the Ethereum's status — the SEC does not recognize the cryptocurrency as a security and proposes to regulate ethers as a commodity.
According to Joshua Stein, the head at Harbor, the rules adopted for supervising of the securities market are not applicable to utility-tokens. He added that the existing norms entail a lot of requirements like KYC, which is not suitable for using dApps.
As previously reported, the Central Bank of Singapore refused to regulate tokens as securities.