US Congressman Warren Davidson invited his colleagues to consider the new version of the law on cryptocurrency. He had already made a similar attempt, but then the Congress committees did not reach the stage of detailed study. This time there is a chance for a positive outcome.
Now in the United States there is no separate law on cryptocurrency. Their appeal is governed by the law on the securities market adopted 72 years ago. This situation has been repeatedly criticized, because those acts to the minimum extent take into account the current realities. The SEC’s main regulator simply cannot find a balance between market needs and investment security.
The Securities and Exchange Commission, organized in 1932, is the main supervisory authority in the financial market. Its first chairman was the father of the future American president, Joseph Kennedy.
As a result, it turned out that American laws hamper the development of blockchain in the country. China and Europe are ahead in the penetration of new technologies. At a time when the Japanese banking group Mitsubishi UFJ Financial Group is launching its own cryptocurrency for retail consumers, in the US they are only exploring this phenomenon. The fact is that until recently, each token fell under the definition of “security” and was subjected to strict control.
Of course, American entrepreneurs have the opportunity to issue tokens. However, this is due to the risks of prosecution due to the unresolved legal issues. Just a week ago, the SEC issued the first “letter of inaction guarantee” regarding a specific token.
Turnkey Jet Travel start-up tokens are recognized as assets that are not securities. At the same time, entrepreneurs were put forward a whole list of requirements for their assets for the future. In particular, these coins cannot be used when developing a mobile application.
In fact, American businessmen in the blockchain area act at their own peril and risk. They can allow the use of new technologies within companies, but as soon as the asset reaches the customer, there is a danger of imposing huge fines.
To solve this problem, Congressman Warren Davidson submitted his draft law to regulate the cryptocurrency market. In it, he proposes to withdraw a number of tokens from the definition of “security”. The document was named Token Taxonomy Act, and has several important points.
In particular, he proposes to transfer part of the authority to regulate the cryptocurrency market in favor of the CFTC and the FTC, dividing the areas of responsibility between them. CFTC and FTC are more loyal to cryptocurrencies and are much more likely to decide in favor of tokens issuers.
But there is no guarantee that Congress will begin to actively consider the Token Taxonomy Act. A few months ago, Warren Davidson had already proposed a similar draft American cryptocurrency law, but the matter did not even reach a hearing in Congress committees.
With all the potential of the market for digital financial assets, the United States was the least interested in their development. When the global economic model is built on dollars, Americans are unlikely to be delighted by the emergence of a competitor. It is possible that in a few years Bitcoin will be able to claim the role of the underlying financial asset. And then what will happen to the dollar?