Lawmakers Mull Changes to Securities Exchange Act to Exclude Cryptocurrencies
Reps. Warren Davidson of Ohio and Darren Soto of Florida introduced a bill this week that is expected to bring regulatory clarity to the cryptocurrency industry.
According to the lawmakers, the “Token Taxonomy Act” will define a “digital token” and clarify that securities laws would not apply to cryptocurrencies once they become a fully functioning network.
The bill should address the clamor from cryptocurrency participants complaining about the idea of applying a 72-year-old securities law to digital currencies. Currently, the SEC uses what’s known as the “Howey Test,” to determine whether or not a cryptocurrency is a security.