Report: US Congressman Announces Plans for Federal Cryptocurrency and ICO Regulation


p style=”float:right;margin:0 0 10px 15px;width:240px”>

                U.S. Rep. Warren Davidson of Ohio announced plans to introduce a bill in the House of Representatives that would regulate ICOs and cryptocurrencies.
                <p dir="ltr"><a href="">U.S.</a> Rep. Warren Davidson (R) has announced plans to introduce <a href="">legislation</a> that would clearly regulate cryptocurrencies and Initial Coin Offerings (<a href="">ICOs</a>), local Ohio news agency <a href="" rel="nofollow,noopener" target="_blank">reports</a> Dec. 3.</p><p dir="ltr">According to, Davidson announced his intention to introduce new legislation at the Blockchain Solutions conference. The bill would create an &ldquo;asset class&rdquo; for <a href="">cryptocurrencies</a> and digital assets, which &ldquo;would prevent them from being classified as securities, but would also allow the federal <a href="">government</a> to regulate initial coin offerings more effectively.&rdquo;</p><p dir="ltr">This development would bring clarity to U.S. crypto <a href="">regulation</a>. Currently, state regulatory agencies <a href="">classify</a> tokens differently in ways that place them under their jurisdiction.</p><p dir="ltr">The Securities and Exchanges Commission (<a href="">SEC</a>) stance is that most cryptocurrencies are securities. The Commodity Futures Trading Commission (<a href="">CFTC</a>), on the other hand, treats cryptocurrencies as commodities.</p><p dir="ltr">In other words, the CFTC states that Bitcoin (BTC) has more in common with gold than with currencies or securities since it is not backed by a government and does not have liabilities attached to it. The Financial Crimes Enforcement Network (<a href="">FINCEN</a>), the agency managing anti-money laundering (<a href="">AML</a>) and know your client (<a href="">KYC</a>) standards, views crypto as money.</p><p dir="ltr">The U.S. Office of Foreign Assets Control (OFAC), which enforces economic sanctions, views crypto as money and blacklists wallets of sanctioned persons. Lastly, the Internal Revenue Service (<a href="">IRS</a>) treats cryptocurrencies as property, meaning that profits from selling them are subject to capital gains <a href="">tax</a>.</p><p dir="ltr">A group of U.S. Congressional representatives <a href="">sent</a> a letter in September to the SEC Chairman Jay Clayton calling for &ldquo;clearer guidelines between those digital tokens that are securities.&rdquo;</p><p dir="ltr">The same month, over 45 representatives of major crypto companies and <a href="">Wall Street</a> firms attended a Congressional roundtable discussion on cryptocurrency and ICO regulation. During meeting, which was hosted by Davidson, experts expressed concerns about a lack of regulatory clarity in the industry and discussed &ldquo;token taxonomy.&rdquo;</p><p dir="ltr">Davidson has previously demonstrated his support for the crypto industry, <a href="">suggesting</a> that the ICO market needs &ldquo;light touch&rdquo; regulation. A spokesman for the U.S. representative said in November that Davidson is <a href="">working</a> on a bill that, once law, would treat ICOs as products rather than securities at the federal and state level, effectively &ldquo;sidestepping&rdquo; security laws.

As Cointelegraph reported yesterday, seven Ohio funds will hand over $300 million to blockchain startups by the end of 2021. Of this funds, $100 million will be invested by nonprofit JumpStart.

Source link

Comments (No)

Leave a Reply

%d bloggers like this: