Jake Chervinsky Says Bill Exempting Crypto from Securities Laws Will Take Time to be Approved
The crypto-related attorney Jake Chervinsky released a tweet in which he says that the Token Taxonomy Act will take months or years to be approved.
This bill exempts cryptocurrencies and Initial Coin Offerings (ICOs) from U.S. securities laws.
I don't know if there's any validity to the rumor that the Token Taxonomy Act will be reintroduced in Congress on February 14, but even if true, there will be months or years of Committee hearings & revisions before the bill could even possibly see a vote. Don't hold your breath.
— Jake Chervinsky (@jchervinsky) January 26, 2019
The Token Taxonomy Act (TTA) was presented in December 2018 by Republican Congressman Warren Davidson and Democrat Rep. Darren Soto. The TTA clarifies that the securities laws do not apply to companies.
The Token Taxonomy Act reads as follows:
“This bipartisan legislation draws a bright line for businesses and regulators by defining a ‘digital token,’ and clarifies that securities laws do not apply to companies that use blockchain once they reach their goal of becoming a functional network.”
The congressmen said that the legislation would provide the necessary regulation and clarity that the market currently needs. At the same time, this would allow the United States to remain competitive in a growing market.
Countries and different jurisdictions around the world are starting to implement regulations related to virtual currencies and blockchain technology. The United States still lags behind in terms of regulations in this area. The industry is growing and is becoming more mature as time passes.
Italy has recently approved the first blockchain legislation that provides clarity to the crypto space. The legislation was approved by the Italian Senate Committee and it would allow companies and firms to operate in a more regulated market with clear rules.
Other European countries are also trying to impose better regulations on the market. Switzerland and Malta are two of the countries with the most flexible and clear regulations related to virtual currencies, digital assets and distributed ledger technology (DLT).