• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: BREAKING: Saylor's Strategy Misses S&P 500 Inclusion, Robinhood Takes Spotlight
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Saylor's Strategy Misses S&P 500 Inclusion, Robinhood Takes Spotlight
SEC EtherDelta securities

US Congressmen Introduce Bill To Exempt Crypto From Securities Law

Osato Avan-Nomayo
by Osato Avan-Nomayo
6 years ago
·
Posted in Legislation, Altcoin News, Bitcoin Regulation, News, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A couple of Congressmen in the United States are trying to get an exemption for cryptocurrencies from securities law. If successful, it could signal a paradigm shift in the US regulatory climate as far as virtual currencies are concerned.


Crypto May Be Exempt From Securities Law

Rep. Warren Davidson (R-Ohio) and Rep. Darren Soto (D-Florida) introduced a bill on Thursday (December 20, 2018) called the “Token Taxonomy Act.” The bill seeks to exempt cryptocurrencies from being classified as securities. If passed, US securities law will no longer apply to virtual currency tokens once their projects become fully functioning networks.

The current securities law framework applied by the SEC to virtual assets comes from the Securities Act of 1933. A US Supreme Court ruling from 1946 introduced the “Howey Test” as a baseline set of rules to determine whether an asset is a security.

Based on the Howey Test, transactions that can be classified as investment contracts are securities. Based on this definition, many ICO tokens, according to the SEC are securities. This is because individuals invest in these ICOs (common enterprises) in the expectation of profit from the efforts of the project team or third party.

However, the sponsors of the new bill argue that the 70-year old Securities Act is inadequate to regulate a market as nuanced as cryptocurrencies. This position is one shared by many stakeholders in the industry. Expressing similar sentiments, Kristin Smith, the Blockchain Association chief said:

These decentralized networks don’t fit neatly within the existing regulatory structure. This is a step forward in finding the right way to regulate them.

Excellent! When we're talking about programmable money, the old rules simply don't apply anymore.

If passed, this bill will scrap the Howey test and create a new framework for crypto assets. 🤞https://t.co/1dSSRReW0U

— Mati (@MatiGreenspan) December 20, 2018

Cryptocurrency-Specific Regulations

For the sponsors of the bill, their efforts are reminiscent of the steps taken during the early days of the internet. Commenting on this, Rep. Davidson, said:

In the early days of the internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. Our intent is to achieve a similar win for America’s economy and for American leadership in this innovative space.

For people like internet security expert and cryptocurrency enthusiast, John McAfee, the SEC has no right to regulate cryptocurrencies in the first place. McAfee hasn’t hidden his disdain for the Commission’s “encroachment” into the market with many strongly-worded posts on Twitter.

Finally!!! The sane elements of our government are introducing laws to restrict the SEC. The laws will legally prevent the SEC from interfering in any way in the workings of the Crypto world. About fucking time!!!https://t.co/sEmtVXDBDQ

— John McAfee (@officialmcafee) December 21, 2018

The current efforts by the lawmakers if successful might initiate the emergence of cryptocurrency-specific regulations in the US. Agencies like the Commodity Futures Trading Commission (CFTC) or Federal Trade Commission might now have oversight over the industry.

Will the token taxonomy act help the US in catching up with the developments in the Asian cryptocurrency market? Please share your thoughts with us in the comments below.


Image courtesy of Twitter (@MatiGreenspan and @officialmcafee).

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Osato Avan-Nomayo

Osato Avan-Nomayo

Follow

When I am not knee-deep in cryptocurrency-related news, I am either attempting to beat my scrabble high score or internally debating an existential dilemma.

Full Profile

Related Posts

TRON Selected By US Department Of Commerce To Publish Economic Data Onchain

TRON Selected By US Department Of Commerce To Publish Economic Data Onchain

2 days ago
acheter-token6900-avant-claim

Dernières 24h pour acheter TOKEN6900 avant le claim !

3 days ago
Ethereum

Ethereum Scores Milestone As Chinese Firm Floats 1st Public RWA Bond

3 days ago
solana-analyse-tendance-leviers-techniques

Solana en route vers les 300 $ : analyse de la tendance des leviers techniques

4 days ago
XRP

SEC Receives Filing For XRP Option ETF From $12-B Amplify

6 days ago
Tether

Tether Loses Its Shine As Market Dominance Slides To 60%

6 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • minwer

    XRP Holders Can Earn $10,000 a Day Through COME...

    17 hours ago
  • BTC prices hit a two-week high, and holders flocked to GMO...

    18 hours ago
  • miner

    Cardano (ADA) Market Outlook: Long-term Potential Passive...

    18 hours ago
  • etnminer

    How to Play to Earn Crypto in 2025: Discover 6 Most...

    23 hours ago
  • miner

    BAY Miner Cloud Mining App Launches with ETH and BTC Users...

    24 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.