Safe Harbor Bill for Cryptocurrency Startups Submitted to the US Congress

The US Congressman introduced a bill to create a “safe haven” for cryptocurrency startups, the idea of ​​which was previously proposed by SEC Commissioner Esther Pearce.

A member of the US House of Representatives has asked lawmakers to consider new rules for digital assets. If the new regulation is adopted, some cryptocurrency companies will be able to avoid the need to comply with securities laws. The Digital Token Transparency Act 2021 will provide legislative support for the idea of ​​the US Securities and Exchange Commission (SEC) Commissioner Hester Pierce.

Back in early 2020, Pearce proposed a three-year “vacation” for startups. The idea of ​​a “safe haven” was that within three years after the first ICO, young companies will be able to develop their network and community without fear of compliance with the regulatory regime.

“Based on the excellent work of SEC Commissioner Esther Pearce, my bill will help provide the necessary legal certainty for digital token-related projects at launch,” McHenry said. “Unfortunately, our current regulatory framework threatens to move these technologies, as well as the jobs created by the fast-growing industry, abroad.”

McHenry’s bill will give cryptocurrency startups up to three years to demonstrate “network maturity” and become decentralized to the point where their associated tokens will not qualify as securities under federal law. The bill requires startups to disclose certain information to token buyers, such as source code, transaction history, and token economics.

McHenry also wrote a letter to SEC Chairman Gary Gensler alleging that the SEC chief “has made a series of disturbing and apparently contradictory public statements regarding crypto assets and other innovative technologies.”