US Congressmen Warren Davidson is planning to introduce a new legislation which will create a new unique asset class for the cryptocurrency. And he has found support from Bobby Lee, who took on Twitter to second the thought put forward by the congressman.
Bill could get in regulatory clarity towards cryptocurrencies and ICO’s
As certain sections of media reported that US congressman from Ohio was planning to introduce a bill that could create a new asset class to cryptocurrencies and ICO ’s, Bobby Lee took onto Twitter to give a thumbs up to this thought. According to Lee, Bitcoin and cryptocurrencies (as opposed to tokens) need to be designated as a completely new asset class as this is the way forward for them and would help them grow in a much-regulated fashion
Yep, I fully agree. #Bitcoin and true cryptocurrency (as opposed to tokens) should indeed be designated as a completely new asset class. That’s the only way forward. https://t.co/aYJaP4Skk9
— Bobby Lee (@bobbyclee) December 6, 2018
The news was reported by Cleveland.com which said that the Republican from the 8th District says he plans to introduce legislation in the House of Representatives that would create a new, unique asset class for cryptocurrencies and initial coin offerings (ICOs), allowing for a clearer path to government regulation. The bill would prevent crypto assets from being classified as securities and empower the federal government to “regulate initial coin offerings more effectively.”
This was not the first time the Congressman had put forward a request to legitimize and regulate blockchain technology. He was part of the group of US lawmakers who had written a letter to the SEC in September 2018, asking for more clarity on regulations before confused tech companies start leaving the country. The letter than had stated that
“Current uncertainty surrounding the treatment of offers and sales of digital tokens is hindering innovation in the United States and will ultimately drive business elsewhere. We believe that the SEC could do more to clarify its position.”
The legislation has not yet been introduced, but should become public soon said Davidson, who announced his plans at the Blockland Solutions conference, held in downtown Cleveland. Davidson was also quoted saying
“What this does for entrepreneurs is it gives people an ability to raise capital a different way,”
The news report also quoted that though the conference focuses on uses outside of cryptocurrency, the main point is how blockchain can be used in government. Lt. Governor-elect Jon Husted spoke Sunday evening about how blockchain technology could be incorporated into InnovateOhio, a plan to modernize Ohio’s governance processes.
Well, regulatory clarity is always welcome in the crypto industry as it provides a direction to crypto business by drawing a line between what is legal and illegal. Defining an asset class for cryptos will protect them from being termed as securities and would effectively bring in better regulation that would act as a catalyst for growth for cryptos.
Will we soon see a designated asset class for cryptocurrencies? Do let us know your views on the same.
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