Sending Office: Honorable Warren Davidson
Legislation: The Token Taxonomy Act of 2019
Sponsors: Soto, Davidson, Gottheimer,
Budd, Gabbard, Perry, Swalwell, Rose (TN)
Endorsements: US Chamber of Commerce, IBM, NASDAQ, Blockchain Association, Andreessen Horowitz, CoinCenter, Gemini, Circle, Digital Currency Group, RSM International, Coinlist, Engine Advocacy and more
Crypto Needs Regulation
Blockchain technology and digital assets are driving innovation throughout the world because they reduce the need for a middleman. Today, we’re seeing projects under development that facilitate overseas payments, allow access to low-cost home equity loans,
lower the cost of health insurance, provide competition in cloud storage, and many more exciting innovations.
Around the globe, we’ve seen regulators take action to provide regulatory frameworks for applications of this new technology. Switzerland, UK, Singapore, and others are attracting capital and creating jobs because they were quick to establish regulatory
Unfortunately, the United States has failed to act leaving consumers susceptible to fraud.
With the recent announcement of Facebook’s Libra, it is apparent this sector isn’t going away anytime soon and regulation is clearly needed.
While some laws clearly apply, new scenarios made possible by the new technology are less clear. The Token Taxonomy Act seeks to provide regulatory clarity to protect consumers and promote innovation.
Rules Protect Consumers and Stop Fraud
Digital assets need the exact same protections as investors in more traditional markets, adhering to the same rules, practices, regulations and compliance protocols. The Token Taxonomy Act protects consumers by clarifying that the SEC has regulation over
certain token transactions where there are information asymmetries between investors and promoters.
Regulation Promotes Innovation
Due to the revolutionary and disruptive nature of blockchain technology, many leaders are calling this the “new internet”. Just as the U.S. spearheaded its position as a world leader in the Internet with the passage of the Telecommunications Act of 1996,
so too can the U.S. become a hub for innovation in blockchain and digital asset technology with the passage of the
Token Taxonomy Act.
For any questions or additional information regarding the Token Taxonomy Act, please reach out to staffer Ron Hammond at Ronald.Hammond@mail.house.gov.
e-Dear Colleague version 2.0