{"id":369417,"date":"2019-01-27T22:30:53","date_gmt":"2019-01-27T22:30:53","guid":{"rendered":"https:\/\/wncen.com\/?p=369417"},"modified":"2019-01-27T18:09:12","modified_gmt":"2019-01-27T18:09:12","slug":"attorney-dont-hold-your-breath-on-token-taxonomy-act-that-exempts-crypto-from-securities-laws","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/attorney-dont-hold-your-breath-on-token-taxonomy-act-that-exempts-crypto-from-securities-laws\/","title":{"rendered":"Attorney: Don\u2019t Hold Your Breath on Token Taxonomy Act That Exempts Crypto from Securities Laws"},"content":{"rendered":"

This past December, cryptocurrency investors were delighted to hear that lawmakers had put forth a bill \u2013 aptly dubbed the \u201cToken Taxonomy Act\u201d \u2013\u00a0that would change the Securities and Exchange Commission\u2019s 72-year-old definition of securities in order to exclude crypto.<\/p>\n

If passed, this bill would entirely alter how the industry is regulated going forward and would offer companies and projects significantly more room for experimentation without worrying about regulatory authorities.<\/p>\n

Although news regarding this bill was seen as being decisively positive, one prominent attorney who focuses primarily on blockchain and cryptocurrencies<\/a>, is now claiming that investors shouldn\u2019t get too excited about this bill.<\/p>\n

Crypto Likely to be Regulated Under Securities Laws for Foreseeable Future<\/strong><\/h2>\n

This bill was introduced to Congress in late-December by two lawmakers and is a bipartisan attempt to modernize the SEC\u2019s archaic securities laws in order to exclude cryptocurrency from its framework.<\/p>\n

Representative Warren Davidson, R-Ohio, made a statement<\/a>\u00a0at the time the bill was proposed, saying in-part that the bill\u2019s primary goal is to ensure that nascent markets and technologies aren\u2019t over-regulated, which could significantly stifle innovation.<\/p>\n

“In the early days of the internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. Our intent is to achieve a similar win for America’s economy and for American leadership in this innovative space,” Davidson explained.<\/p><\/blockquote>\n

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Washington DC gridlock could lead to major delays in the Token Taxonomy Act being voted on.<\/figcaption><\/figure>\n

US regulatory authorities have been slow to regulate the cryptocurrency industry, but the massive influx of neophyte investors into the crypto markets in late-2017 led the SEC to take an increased interest in the industry, and they have since been cracking down heavily on scams and uncompliant crypto-related operations.<\/p>\n

Attorney: \u201cDon\u2019t Hold Your Breath on Token Taxonomy Act\u201d<\/strong><\/h2>\n

In a recent tweet from popular cryptocurrency and blockchain-focused attorney, Jake Chervinsky, he explained that the Token Taxonomy Act, which could be reintroduced in Congress on February 14th, likely won\u2019t be voted on<\/a> any time soon.<\/p>\n

\u201cI don’t know if there’s any validity to the rumor that the Token Taxonomy Act will be reintroduced in Congress on February 14, but even if true, there will be months or years of Committee hearings & revisions before the bill could even possibly see a vote. Don’t hold your breath,\u201d Chervinsky explained.<\/p><\/blockquote>\n

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I don't know if there's any validity to the rumor that the Token Taxonomy Act will be reintroduced in Congress on February 14, but even if true, there will be months or years of Committee hearings & revisions before the bill could even possibly see a vote. Don't hold your breath.<\/p>\n

— Jake Chervinsky (@jchervinsky) January 26, 2019<\/a><\/p><\/blockquote>\n