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Republican Congressman Warren Davidson, a passionate supporter of blockchain and bitcoin, plans to introduce federal legislation that will govern initial coin offerings (ICOs) and cryptocurrencies.
The bill would create a "class of assets" for the tokens, which would prevent them from "being classified as securities, but would also allow the federal government to regulate the initial coin offerings more effectively," Cleveland.com reported.
US Congressman Warren Davidson discusses the bipartisan bill that could classify assets denominated as exempt from securities laws. # BlocklandCle18 #blockchain #Cleveland pic.twitter.com/pyrTmWrNl0
– Gregory L. Watkins (@gwatkinsesq) 3 December 2018
Davidson made the announcement at a four-day blockchain conference in Cleveland that saw Ethereum co-founder Joseph Lubin.
@ethereumJoseph on the stage of # BlocklandCLE18. Fantastic visionary with an incredible story. I'm so proud to be a part of @ConsenSys while we all strive to save the world. @evin pic.twitter.com/zIDGC294nh
– Randall distributed (@ randallm918) 2 December 2018
Republicans – who are generally opposed to regulation – have led the prosecution in Washington demanding greater clarity on the plans of the Securities and Exchange Commission to regulate virtual currencies such as bitcoins, although the crypt has found support from all political spectrum.
In a letter from September 2018 to SEC President Jay Clayton, 12 Republicans and two Democrats urged the agency to specify how it intends to regulate the crypt.
Congressman Davidson, a member of the House's Financial Services Committee, was among the signatories.
The House's Financial Services Committee oversees the SEC, the US Treasury, the Federal Reserve and other US financial services regulators.
"Light Touch" approach to Crypto Laws
In August 2018, Rep. Davidson invited 32 cryptocurrency companies to Capitol Hill for a summit to discuss the ICO regulation, as reported by CCN.
During the bipartisan round table discussion, Davidson emphasized the importance of avoiding overly restrictive laws that would hinder innovation.
"Leveraging the potential ICO offer requires a law that provides a simple but clear" light touch "approach," he said.
While the laws are being discussed, the SEC has moved forward with extensive repressive actions against false ICOs and cryptographic fraud schemes, as reported by CCN.
"Critical" international cooperation to bring illegal ICOs to justice: SEC https://t.co/5yPPSnEGa8
– CCN (@CryptoCoinsNews) 5 December 2018
Pro-Crypto Wheels already on the move
Meanwhile, in Washington, D.C., many initiatives are under way to promote the traditional adoption of cryptocurrencies.
In September 2018, Republican Congressman Tom Emmer introduced three bills that will support the development of crypto and blockchain, the technology behind bitcoin.
The three invoices are:
- Resolution that supports digital currencies and Blockchain technology.
- Blockchain Regulatory Certainty Act.
- Safe Harbor for Taxpayers with Forked Assets
Emmer – who is co-chairman of the Congressional Blockchain Caucus – said that the United States should prioritize the development of the blockchain and create an environment that allows the private sector to drive innovation.
"This is an exciting time for blockchain technology and cryptocurrencies," said Emmer. "Lawmakers should embrace emerging technologies and provide a clear regulatory framework that allows them to thrive in the United States."
Together with the Congressional Blockchain Caucus, a pro-cryptic lobbying group was recently launched in Washington, DC by three of the largest cryptocurrency companies in the United States: Coinbase, Circle and the Digital Currency Group.
These developments are clear signs that the industry is taking definitive actions to promote the traditional adoption of cryptocurrencies.
The Bitcoin evangelizers promote targeted regulation
In recent months, the SEC and the CFTC have issued statements warning investors about the potential for fraud and price manipulation in the encrypted market.
The crypto evangelists – such as the Winklevoss twins and the Galaxy Digital CEO Mike Novogratz – support an adequate federal oversight, stating that regulatory control will legitimize the industry by eliminating scam artists.
"Eliminating bad actors is a good thing, not a bad thing, for the health of the market," said Novogratz.
Tyler Winklevoss, the managing director of the New York-based cryptocurrency exchange, Gemini, is in agreement.
"These technologies can not thrive and grow without the weighted regulation that connects them to finance," Winklevoss said. "As long as the jurisdictions reach the right balance, we think it will be a great advantage and we will win for cryptocurrencies".
Featured image of Warren Davidson for Congress / YouTube
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