Republican Congressman Warren Davidson, an avowed bitcoin and blockchain fan, plans to introduce federal legislation that will regulate initial coin offerings (ICO) and cryptocurrencies.
The bill would create an “asset class” for tokens, which would prevent them from “being classified as securities, but would also allow the federal government to regulate initial coin offerings more effectively,” Cleveland.com reported.
Davidson made the announcement at a four-day blockchain conference in Cleveland that featured Ethereum co-founder Joseph Lubin.
Republicans — who generally oppose regulation — have been leading the pro-crypto charge in Washington by demanding more clarity on the Securities and Exchange Commission’s plans to regulate virtual currencies like bitcoin, though crypto has found support from across the political spectrum.
In a September 2018 letter to SEC chairman Jay Clayton, 12 Republicans and two Democrats urged the agency to spell out how exactly it plans to regulate crypto.
Congressman Davidson — a member of the House Financial Services Committee — was among the signatories.
The House Financial Services Committee oversees the SEC, as well as 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 ICO regulation, as CCN reported.
During the bipartisan roundtable discussion, Davidson underscored the importance of avoiding overly restrictive laws that would impede innovation.
“Tapping the potential ICO’s offer requires a law that provides a simple but clear ‘light-touch’ approach,” he said.
While laws are being discussed, the SEC has moved forward with sweeping crackdowns on sham ICOs and crypto fraud schemes, as CCN reported.Pro-Crypto Wheels Already In Motion
Meanwhile, there are a lot of wheels in moti...