US Congressman Warren Davidson Wants Better Crypto and Blockchain Definitions

Clearly, virtual currencies should be regulated and have a clear legal framework to properly operate. This is what Congressman Warren Davidson believes. Member of the financial services committee in the U.S. Davidson spoke about virtual currencies during an interview with CNBC.

He said that virtual currencies are much more than just Bitcoin and that it is not so easy to create proper regulations. He then mentioned how they are working to legislate virtual currencies with the support of industry leaders. According to Mr. Davidson, the intention is to legislate with a clear knowledge in the subject.

As the Congressman explained, clear rules and better regulations would help the ecosystem to thrive since it will provide certainty and clarity for actors. Moreover, he explained how the U.S. Securities and Exchange Commission (SEC) is working in order to clarify concepts related, for example, to Bitcoin ETFs. The regulatory agency has been working in order to approve a crypto ETF, but the latest proposals have been delayed.

Davidson has also talked about the confusion that arises between security tokens and tradeable tokens that can increase uncertainty in the space. About it he mentioned:

“A lot of people, as well as officials, are still grappling with the core details of the cryptocurrency industry. The term ‘security tokens’ creates a sense of confusion that is very hard to disperse. Imagine f Apple launched the iCloud and each TB of storage was equal to a token. Would users buy it? I don’t think so.”

Later during the interview, he talked about custody services. At the moment, there are different companies that are working in order to offer institutions and wealthy investors institutional-grade custody services.

Furthermore, he talked about anonymity issues in the virtual currency world. He said that the point of entry is anonymous but as most of the virtual currencies are based on a public ledger, everything can be track and is visible for others.

Finally, he explained that cryptocurrencies, terms, asset classes, tokens and securities need to be properly defined by regulators and by experts in the space.

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