Soto, Davidson Reintroduce Token Taxonomy Act

Press Release

This week, Representatives Darren Soto (D-FL) and Warren Davidson (R-OH) reintroduced the Token Taxonomy Act. The legislation establishes much looked-for clarity for businesses, consumers, and regulators operating in the growing U.S. blockchain ecosystem. The bill is cosponsored by Reps. Ted Budd (R-NC), Scott Perry (R-PA) and Josh Gottheimier (D-NJ).

Blockchain creates a secure, unalterable public record and is poised to dramatically change the world, from voting systems to health records. Currently, a patchwork of laws and regulations creates confusion and even hostility to various blockchain businesses. Without a workable federal regulatory structure, many business and entrepreneurs are taking their businesses overseas where clearer and friendlier laws have established thriving blockchain economies.

To better prepare for the environment where these innovations occur in the United States, the Token Taxonomy Act clarifies the definition of what constitutes a security and the regulations surrounding such.

"It is time for the United States to step up and lead in blockchain technology," said Congressman Darren Soto. "The bills Rep. Davidson and I have collaborated on add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States. This is an important first-step to promoting innovation and maximizing the potential of virtual currencies for the U.S. economy, all while protecting customers and the financial well-being of investors. The strong support for this bipartisan legislation from U.S. businesses and stakeholders is clear indication that our friendly, light-regulatory proposal will propel the United States to be at the forefront of this industry."

"The window is closing," said Rep. Davidson. "If we don't act quickly, the United States 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."

"The Token Taxonomy Act will make sure the development of blockchain technology stays in the United States while promoting better investor protections, capital formation, and innovation," said Rep. Budd. "We need big, 21st century ideas to grow our economy and innovate for the future. The Token Taxonomy Act is one of those bold ideas."

Kristin Smith, executive director of the Blockchain Association, also endorsed the bill: "It's important that members of Congress engage with vital questions of regulatory clarity and the future of the crypto economy in the United States. We're pleased that Representative Davidson continues to show sustained and insightful commitment to getting the answers to these big questions right."

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