The US Lawmakers Plan To Change The Securities Exchange Act And Prevent Any Crypto From Being Labeled As Security

The security label is a stringent subject in the crypto space and the SEC’s power might be about to be restricted in this regard.

Preventing digital coins from being labeled as securities

The US lawmakers are planning to introduce a bill that could change the Securities Exchange Act. In other words, this could prevent any digital asset from being labeled as a security in the future.

The Token Taxonomy Act is introduced in the House of Representatives by the Ohio Republican Warren Davidson and Florida Democrat Darren Soto.

If the act eventually passes the law will see to it that “securities laws would not apply to cryptocurrencies once they become a fully functioning network.”

Davidson said that this bill would provide more clarity in the cryptosphere which has been expected for a long time.

“In the early days of the internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. We intend to achieve a similar win for America’s economy and for American leadership in this innovative space,” he said.

SEC chairman says all ICOs are securities

Back in June, the SEC Chairman HJay Clayton told CNBC that the agency doesn’t plan on amending the SEC’s standard’s on its own and he also made sure to say all ICOs are securities.

He said that “We are not going to do any violence to the traditional definition of a security that has worked for a long time. There’s no need to change the definition.”

He further continued and explained that “A token, a digital asset, where I give you my money, and you go off and make a venture, and in return for giving you my money I say ‘you can get a return’ – that is a security, and we can regulate that. We regulate the offering of that security and regulate the trading of that security.”

He concluded by saying that also many coins which are already in existence are securities as well.

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