U.S. Congressman Warren Davidson (R-OH), has reintroduced the Token Taxonomy Act. The bill was previously floated in 2018 and 2019 but failed to see the light of day under the Trump administration. If it makes it this time around, altcoins will be exempted from U.S. securities law and crypto-to-crypto transactions will no longer attract taxes.
Rep. Davidson Not Giving Up Just Yet
Not giving up on his fight for the implementation of amenable regulations in the United States blockchain ecosystem, Congressman Warren Davidson, a former military officer who’s now Representing Ohio, has reintroduced the Token Taxonomy Act.
It will be recalled that the bill was previously introduced in 2018, but the proposal was never voted upon and in 2019, Davidson reintroduced a revised version of the bill. However, it still could not see the light of day.
With the crypto-hating ex-president Trump administration now over, Davidson and his other forward-thinking colleagues, including Ted Budd, Darren Soto and Josh Gottheimer, are now looking to give the legislation one more trial.
Enter Token Taxonomy Act 3.0.
The Token Taxonomy Act 3.0 has exactly the same objective as the one proposed in 2019. It aims to amend the U.S. Securities Act of 1933 and the Securities Exchange Act of 1934 in a way that removes digital tokens from their purview, exempt cryptoassets held in retirement accounts from taxation and put in place tax exemptions for crypto-to-crypto transactions, among others.
Commenting on the Token Taxonomy Act 3.0, Davidson reiterated that the United States is gradually losing the opportunity of taking the lead in the rapidly-evolving cryptospace, and now is the time to act.
In his words:
“The window is closing. If we don’t act quickly, the UnitedStates will be left behind. Other countries have found ways to regulate blockchain projects and, in doing so, have made themselves more attractive to entrepreneurs. By establishing the appropriate regulatory environment, we can make sure that the opportunities and advancements that blockchain innovation promises will happen here in the United States, for the benefit of Americans.”
Indeed, the growth of the U.S. crypto industry is being stifled by regulatory uncertainties, as residents cannot access a vast array of legitimate crypto-linked investment vehicles.
In a bid to enlighten financial regulators in the country and make them understand the importance of cryptos, the Blockchain Association has scheduled a meeting with the U.S. Treasury Secretary Hellen Yellen, who recently said bitcoin’s primary use case is for illicit transactions.