US Congress To No Longer Regulate Tokens As Securities
The US government may soon begin to regulate cryptocurrencies differently from stocks and other financial instruments. Earlier, two congressmen presented a bill that defines digital assets and allows avoiding excessive regulation of the market, Cointelegraph reports.
The Token Taxonomy Act provides that these assets will no longer be regulated under the securities law. Warren Davidson, co-author of the bill, stated that Congress wants to add clarity and restrain excessive control over the market, thereby making America the leader in the field of crypto regulation.
It is stressed that in recent years, many US projects have relocated to Switzerland and Singapore, the legislation of which is more loyal to blockchain initiatives, including ICO. The new bill also motivates programmers to stay and develop the digital currency industry in their home country.
Moreover, if the proposed document enters into force, it will cancel the tax on income from crypto operations in the amounts of up to $600. Under the new law, digital assets will still be considered property, as determined by the US Internal Revenue Service back in 2014.
The Token Taxonomy Act does not oblige to consider all types of crypto coins as non-securities. The regulation of those assets that still fall under this definition will be the responsibility of the US Securities and Exchange Commission (SEC).
Earlier, William Hinman, the SEC representative, stated that a token may or may not be security depending on the decentralization level of a blockchain network: if it does not have a central authority, then a cryptocurrency cannot be considered security.
Earlier, a bitcoin supporter headed the administration of the White House.