Exclusive: US Congress members to submit major pro-cryptocurrency bill - early support coming from both parties...

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In my final article of 2018 I covered what I believe to be the most powerful, pro-cryptocurrency bill among all those discussed so far - the "Token Taxonomy Act".

I describe it this way because the bill would implement the one vital and important change the markets truly need for a full-on comeback, by giving tokens their proper legal classification, and thus allow US citizens once again to have the freedom to fully participle in the markets.

But at the time no one was sure if, or when, we would see the bill begin the process to become law.

To catch everyone up on the current state of things - in the US cryptocurrencies are being legally classified 'securities' so oversight of them goes to the Securities Exchange Commission (SEC). The Token Taxonomy Act takes this on directly and removes the 'security' classification, and the SEC oversight.

It's important to mention - this does not mean scams can run wild.  In fact, of the scam ICO's and CEO's that were charged with crimes - those crimes were not related to being a security.  Fraud is illegal, lying to investors is illegal - security or not.  The only difference would be that the CFTC would likely be the agency pressing these fraud charges.

Cryptocurrency and blockchain technology are often mentioned alongside Artificial Intelligence and IOT technology as the 'cutting edge' tech of our time - but cryptocurrency is the only one being held back by government regulations written in the 1940's.

While cryptocurrencies are intended to be freely exchanged, the laws surrounding them are so outdated they were written for the stock market at a time when stocks were traded on paper certificates.  In fact, the hot new technology when these regulations were written - color TV.

So what happened when new tech met old laws? Disaster for the United States.

Companies involved in the cryptocurrency space that began in the US packed up and left, taking the jobs with them.  When a company leaves, no more tax revenue for the state and federal government either.

No one wanted to risk building something that could be torn down the next day - even if they conducted honest ethical business. The law meant that a company based around a cryptocurrency could still be shut down - simply for existing as an 'unlicensed security'.

For some perspective, just in the first half of this month (Jan 1st-Jan 15th 2019) cryptocurrency startups raised $160 million.  Look at where those funds went - Canadian based companies brought in a hefty $80 million, the Netherlands $10 million, the UK around $5 million... but the USA? Bottom of the list with an embarrassing $100k.  Remember, that's just half of 1 month - imagine a full year.

That's not the only downside for the United States and it's citizens. Even if a startup in the cryptocurrency space isn't located in US, doing business with someone in the US means they must follow US regulations as well. Not wanting to deal with it, they've ignored the country entirely.

Once the birthplace of countless breakthrough technologies, the United States now finds itself being abandoned, and ignored.

But there's light at the end of the tunnel.

I have now confirmed that the Token Taxonomy Act is on the verge of being introduced in the House, where it will soon begin the process of becoming law. The bill's original authors, Congressmen Warren Davidson (Republican, Ohio) along with Darren Soto (Democrat, Florida) are working together to give it a bipartisan introduction.

Speaking directly with Michael Hiles, Congressman Davidson's adviser on the issue and CEO of blockchain solutions company 10XTS, I was able to confirm a target date of February 14th (Valentines day) for the bill to be officially introduced.

The objectives as explained by Congressman Davidson are:

“This bill clarifies a 1946 court case that the SEC has been using to determine what a security is and effectively makes it clear that the finished product (cryptocurrency token) is no longer a security." he's also fully aware of the issues causing the US to fall behind, adding "This bill provides the certainty American markets need to compete with Singapore, Switzerland, and others who are aggressively growing their blockchain economies. To be certain, there will be other regulatory initiatives at some point, but this legislation is an essential first step to keeping this market alive in the United States."

There's a number of reasons to believe these efforts will be successful.  With members of both political parties presenting it, assistance from newly launched cryptocurrency advocate groups in Washington DC, and a US President who currently has a cryptocurrency fan as his Chief Of Staff in the Whitehouse.   I go into detail in another article i've written "Why the new pro-cryptocurrency bill WILL PASS in 2019..." read that here.

But just because the odds seem in our favor, the cryptocurrency community should't just relax and hope for the best.

Tweet, e-mail, and post on the Facebook pages of your representatives! Click here to find your Congressional representative by zip code - and feel free to take any of the points made in this article and use them in your message.

Michael Hiles tells me the bill is currently getting it's final touches, they're 'adjusting the language based on feedback' - then it's ready to go! 

We have several reporters assigned to following it's progress, we'll have updates as soon as they're available.

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Author: Ross Davis
E-Mail: Ross@GlobalCryptoPress.com Twitter:@RossFM
San Francisco News Desk


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