The Token Taxonomy Act (TTA) is currently regarded as the heftiest pro-crypto bill of all the bills that have hitherto been debated. This is due to the fact that the bill will once again provide US citizens with the exemption to maximumly engage in digital currency markets by giving cryptos legal classifications.
The TTA was officially introduced on Thursday, December 20, 2018, by Congressmen, Warren Davidson (Republican) and Darren Soto (Democrat) to give light-touch regulatory certainty for the distributed ledger technology (DLT) and cryptocurrency industry. Considering the lack of DLT knowledge and guidance, TTA serves as a significant step forward towards offering the highly desired regulatory limpidity.
The two Congress members tabled the bill before Congress on December 20 last year seeking to exempt cryptoassets from securities laws, as Coinidol earlier reported.
With its primary focus on digital currencies, the act would free these cryptocurrencies from the definition of a security for the purposes of both the Securities Act of 1933 & the Securities Exchange Act of 1934. In addition, the TTA makes many tax law changes and launches an elision for particular crypto transactions. This Act is anticipated to be legally introduced on Thursday, February 14, a couple of days from now and start the process of becoming law.Competition Among Countries
Today, US cryptos are classified as ‘securities,’ consequently, oversight of them goes to the US SEC, hence the aforementioned TTA takes them on straight and omits the US SEC oversight plus the security designation.
Davidson said that the bill elucidates a 1946 court case which the US SEC was using to ascertain what a security is, making it more clear that digital currencies are not a security. Davidson also added: