2020 Candidate Tulsi Gabbard is in Favor of Reintroducing Crypto Token Exemption Bill to the SEC
The Token Taxonomy Act has been reintroduced in the Congress of the United States. Warren Davidson, who is in favor of virtual currencies and a member of the Congress, has decided to present this Token Taxonomy Act once again. Back in 2018, he presented this proposal with Florida representative Darren Soto.
Token Taxonomy Act Reintroduced
According to the recognized crypto lawyer, Jake Chervinsky, the Token Taxonomy Act has once again been presented in the U.S. Congress. As he explained, this is just the first step of a process that could take a long period of time. Moreover, he mentioned that the final bill could be completely different from the current draft that was presented and it might take a longer time to be approved.
The new bill seems to have a somehow stronger wording compared to the original proposal. It proposes limits for states to regulate virtual currencies as securities. It is worth mentioning that there are some states, including Texas, that could approve BitLicense-like regulations to control the market and fight against fraudulent activities. It will be interesting to see how this is going to affect the regulatory landscape in the country.
One of the interesting parts of the bill is related to tax policies. The bill proposes tax exemptions for the exchange of one virtual currency to another. Thus, exchanging one virtual currency for another would no longer be treated as a taxable situation.
Tulsi Gabbard, who is running for nomination from the Democratic Party for the 2020 presidential race, seems to be supporting this bill. At the same time, there are other three sponsors that have also decided to support it: Josh Gottheimer, Tedd Budd and Scott Perry.
The Token Taxonomy Act has been re-introduced in the U.S. Congress. This is the first step in a very long legislative process: the final bill could end up quite different from today's draft, and probably won't see a vote any time soon. Give it a read here:https://t.co/2Cmv4Oo8sX
— Jake Chervinsky (@jchervinsky) April 9, 2019
According to the trader Josh Olszewicz, the bill needs a re-write and he has already talked with the sponsor of it. Jake Chervinsky agrees with Mr. Olszewicz by saying that from the securities litigation perspective, the bull is not an improvement over the Howey test. Moreover, he said that space should focus on the tax issue and deal with securities later.
Caitlin Long, who has been working in Wyoming to create a better regulatory ecosystem in the state, agrees with Chervinsky in his analysis.
— Caitlin Long 🔑 (@CaitlinLong_) April 10, 2019
Regulatory issues create conflicts around the world. Countries want to have control over virtual currencies. The United States remains yet without a clear regulation in terms of digital assets compared to other countries such as Switzerland, Malta or Japan.