Token Taxonomy Act Re-Submitted to the U.S. Congress

Representative Warren Davidson has reintroduced the Token Taxonomy Act to Congress. This is the third attempt by a congressman to force the House of Representatives to consider this bill.

He first introduced it at the end of 2018, and then introduced it again with minor changes in 2019. Then it became known that the Law on Taxonomy of Tokens implies tax exemption for cryptocurrency transactions in the amount of less than $ 600. The bill has not yet been submitted for a vote in the House of Representatives.

If passed, the law “would amend the Securities Act of 1933 and the Stock Exchange Act of 1934 to exclude digital tokens from the definition of a security.” The law will also change the tax structure for cryptocurrencies held in an individual retirement account.

Congressman Darren Soto, one of the co-sponsors of the bipartisan bill, said the bill “will add critical definition and jurisdiction to create a strong digital asset market in the United States.”

However, the bill itself, while approved by the Blockchain Association, may not benefit the industry in terms of regulatory clarity. The federal definition of a digital token may face opposition from individual states like Wyoming, which have created their own rules for cryptoassets. Moreover, according to lawyer Gabriel Shapiro, states will find it very difficult to regulate “any aspect of digital token sales other than obvious fraud.”

Recall that the other day, US lawmakers proposed to create a working group, which will include representatives of the SEC and CFTC, to assess the current regulatory framework for cryptocurrencies and make recommendations for changing it.