Members of the US House of Representatives Warren Davidson and Darren Soto presented a bill excluding “digital tokens” from the definition of securities, approved in the 1930s of the last century.
Token Taxonomy Act of 2018 by on Scribd
The draft law “On the classification of tokens” states that the rules on securities are not applicable in relation to cryptocurrencies. The definition of “digital tokens” is also given. The latter are defined in the document as “digital units” that can be created as a result of mining or mining. At the same time, they are governed by rules that cannot be changed by an individual or a group of individuals.
Also about digital token says the following:
“… has a transaction history that is recorded in a distributed digital registry or digital data structure, where consensus is achieved through a mathematically provable process”
In addition, tokens say that they can be transferred between people directly, without intermediaries. It is also noteworthy that digital tokens “are not an expression of financial interest in a company, including participation in capital, debt interest or a share of income”
The bill also contains clauses related to taxation, use and sale of cryptocurrencies. In particular, lawmakers propose not to tax profits from transactions with cryptoactive assets, not exceeding $ 600.
Among other things, legislators propose to amend the laws “On Securities” (1933) and “On Trade in Securities” (1934), adding to them the definition of digital tokens.
“In the very early stages of Internet development, Congress passed a law that clarifies and opposes the desire to regulate the market. We intend to achieve a similar effect for the US economy, providing the country with leading positions in the field of innovation, ”said Davidson.
Also, according to the legislator, the US markets must compete with Singapore, Switzerland and other countries that are actively developing blockchain-economy. Legislation, according to Davidson, is an essential element for ensuring the US competitiveness in the blockchain technology field.