United States Representative Warren Davidson (R) disclosed his plans to launch legislation that would regulate cryptocurrencies and Initial Coin Offerings (ICOs).
This is according to a report from Ohio news agency Cleveland.com.
Davidson made known his intention to launch new legislation at the Blockchain Solutions conference. The bill would make an “asset class” for cryptocurrencies and digital assets, which “would prevent them from being classified as securities, but would also allow the federal government to regulate initial coin offerings more effectively.”
This development would bring some clarity to crypto regulation in the country. At the moment, state regulatory agencies categorize tokens differently in ways that place them under their purview.
The Securities and Exchanges Commission (SEC) position is that most cryptocurrencies are securities. The Commodity Futures Trading Commission (CFTC), meanwhile, treats cryptocurrencies as commodities.
In other words, the CFTC remarks that Bitcoin (BTC) shares more with gold than with currencies or securities since it is not supported by a government and does not have liabilities linked to it. The Financial Crimes Enforcement Network (FINCEN), the agency managing anti-money laundering (AML) and know your client (KYC) standards, considers crypto as money.
The U.S. Office of Foreign Assets Control (OFAC), which implements economic sanctions, believes crypto as money and blacklists wallets of sanctioned persons. And finally, the Internal Revenue Service (IRS) treats cryptocurrencies as property, which means that profits from selling them are subject to capital gains tax.
A group of U.S. Congressional representatives forwarded a letter to the SEC Chairman Jay Clayton back in September, calling for “clearer guidelines between those digital tokens that are securities.”
The same month, more than 45 representatives of major crypto firms and Wall Street firms gathered at a Congressional roundtable discussion on cryptocurrency and ICO regulation. During meeting, which was hosted by Davidson, experts conveyed concerns about a lack of regulatory clarity in the industry and discussed “token taxonomy.”
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