Warren Davidson, Republican Congressman and an assertive Bitcoin and blockchain zealot, is planning to introduce Federal legislation that will regulate the digital currencies and Initial coin offerings (ICO).
In a report from Cleveland.com, the bill would create an “asset class” for tokens, preventing them from “being classified as securities, but also allow the federal government to regulate initial coin offerings more effectively.”
Republicans who are usually not in favor of regulation have been quite proactive in leading the pro-crypto charge, demanding of clarity on the Securities and Exchange Commission’s plans to regulate digital currencies such as Bitcoin. It remains a fact that crypto has gained substantial support from the political avenue.
In September 2018 letter to Securities and Exchange Commission Chairman, Jay Clayton, two Democrats and 12 Republicans requested the agency to elucidate its approach to regulate crypto.
In a summit held in August 2018, Republican Congressman Davidson invited 32 cryptocurrency companies to discuss ICO regulation. During the discussion, Davidson emphasized avoiding overly restrictive that would hinder innovation. He said, “Tapping the potential ICO’s offer requires a law that provides a simple but clear ‘light touch’ approach.”
Meanwhile, the measures to promote mainstream adoption of cryptocurrencies are already in motion. In September, Republican Congressman Tom Emmer introduced three bills that aim to support the development of crypto and blockchain.
Following are the three bills:
- Resolution Supporting Digital Currencies and Blockchain Technology.
- Blockchain Regulatory Certainty Act.
- Safe Harbor for Taxpayers with Forked Assets Act.
Emmer is co-chairman of the Congressional Blockchain Caucus. He said, “This is an exciting time for blockchain technology and cryptocurrencies. Legislators should be embracing emerging technologies and providing a clear regulatory system that allows them to flourish in the United States.”
In the past recent months, the SEC and the CTFC have warned investors about the chances of fraud and price manipulation in the cryptocurrency market. The plans to regulate cryptocurrency and blockchain technology has been in favor of many personalities dealing the field like the crypto evangelist, Winklevoss twins and Galaxy Digital CEO Mike Novogratz, who support targeted regulation.
Novogratz said, “Weeding out the bad actors is a good thing, not a bad thing, for the health of the market.”
The CEO of cryptocurrency exchange Gemini, Tyler Winklevoss shared the sentiment.
“These technologies can’t flourish and grow without thoughtful regulation that connects them to finance. As long as jurisdictions strike the right balance, we think that it’s going to be a huge boon and win for cryptocurrencies.”