SEC Regulations Not Suitable For Crypto
A pair of U.S. lawmakers are looking to bridge the gap between the crypto community and fuzzy regulation. Rep. Warren Davidson of Ohio and Darren Soto of Florida have introduced the “Token Taxonomy Act,” which would essentially remove cryptocurrencies from the securities discussion.
The bill, if it becomes law, would likely exclude most digital currencies from the SEC’s definition of what constitutes a security. The SEC’s current definition of a security, based on the Howey Test, goes back more than 70 years, with no provisions for the decentralized assets which currently circulate in the crypto markets.
According to CNBC, the new bill, which is a product of both sides of the aisle, also attaches a definition to digital securities; something that until now has been ambiguous.