The Bill that Cryptocurrencies Need in the USA Has Been Submitted to Congress

Two members of the US Congress have introduced a new bill that will give crypto much-needed regulatory clarity. The Token Classification Act asserts that the digital token should not be classified as a security.

This bill is the product of the bias of Republican Congressman Warren Davidson of Ohio and Darren Soto, a Democrat representing Florida. . The bill proposes that securities should no longer be related to the classification and regulation of digital tokens.

Cryptocurrencies Likened to the Early Times of the Internet

According to Davidson, “In the early days of the Internet, Congress It passed laws that ensured certainty and resisted overregulation of the market. Our goal is to achieve similar gains for America’s economy and American leadership in this innovative space.”

The U.S. Securities and Exchange Commission (SEC) has generally governed securities as something that includes investment contracts. In fact, according to this provision, “a person invests his money in a joint venture and expects profits only from the efforts of a third party or sponsor.” But cryptos are different because of the platform they are on. Because these platforms are based on adding value and can improve. It can often be traded without a middleman.

While this is not the only issue affecting crypto regulation, what is worth and what is worth is a topic of great debate. The mention of Bitcoin and Ethereum as commodities rather than securities in a comment made by an SEC member earlier in the year led to a significant price rally.