US House of Representatives Warren Davidson has submitted the Token Taxonomy Act to Congress for the third time. This is stated on the website of the legislative body.
The document amends the Stock Exchange Act of 1934 and the Securities Act of 1933. According to Davidson, the authorities should give the cryptocurrency industry more regulatory clarity.
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
The bill removes “digital tokens” from the definition of securities. The authors of the initiative proposed not to tax transactions involving the exchange of one cryptocurrency for another and withdrawal to fiat.
Stellar Development Foundation CEO Denelle Dixon welcomed the congressman’s efforts to create a regulatory framework for the industry.
Great to see the #TokenTaxonomyAct introduced today by @warrendavidson and his colleagues – thank you for leading the way to bring regulatory clarity for digital assets and doing it through close private-public partnership! https://t.co/rU5PCChuPO
– Denelle Dixon (@DenelleDixon) March 10, 2021
Davidson introduced the bill in 2018. According to him, legislation is an essential element for ensuring the competitiveness of the United States in the field of blockchain technologies.
In April 2019, the author of the document re-submitted it to Congress. The updated version includes data on the decisions of the legislatures of individual states: Colorado and Wyoming.
Recall that in February 2021, the Commissioner of the US Securities and Exchange Commission (SEC) Hester Pierce called on the US authorities to quickly create clear regulatory rules for the cryptocurrency industry.
Later, candidate for the post of SEC chairman Gary Gensler called bitcoin a ” catalyst for change ” and said that regulation must keep pace with technology.