U.S. Congressmen tabled bipartisan bill on July 15 to clearly define assets such as digital tokens and other emerging technologies under applicable securities law.
Known as Security Clarity Act, the bill was introduced by Rep Tom Emmer (R-MN), Rep Darren Soto (D-FL) and Rep Ro Khanna (D-CA). This law aims to change the definition of a term that has been used for more than 75 years. The status of an asset sold as an “Investment Contract” would become an “Investment Contract Subject”.
According to the press release, this bill would provide a solution for those who have met the current securities registration requirements or have qualified for an exemption. Once these requirements have been met, entrepreneurs can distribute their assets without fear of additional regulatory burdens.
“There has been an unreasonable approach by regulators on how federal securities laws should be applied to transactions that involve the sale of blockchain-based tokens, and that lack of clarity is damaging American innovation. Between regulation through enforcement and the various legal decisions regarding the classification of these assets, regulatory uncertainty has hampered the growth of blockchain technology, so many are forced to take the technology overseas. “
The Securities Clarity Act is supposed to be a technology-neutral bill, the representative said. It would apply equally to any tangible or digital asset, stating that an investment contract asset, such as a digital token, is segregated and segregated from the offering in which it may have participated.
Congressman Soto stated:
“As Congress works to protect those who invest in this technology, the Securities Clarity Act will add important definition and jurisdiction to help keep a strong digital asset market in the United States safe. This is an important first step in driving innovation and maximizing the potential of virtual currencies for the US economy while protecting customers and the financial well-being of investors. “
Emmer has expressed concern that regulation is affecting Americans who previously benefited from cryptocurrencies. Speaking at a hearing for the US House of Representatives Financial Services Committee in June, Emmer said:
“In the past few years I have been fortunate to meet a lot of great crypto and blockchain innovators. A common refrain during our discussion is that they are dying to develop their crypto and blockchain ideas here in the United States. But they’re not doing it because of the ongoing uncertainty surrounding crypto regulation. “
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This bill comes a day after Federal Reserve Chairman Jerome Powell spoke to the House of Representatives about the need for stricter regulation of stable coins.