The draft law would develop and asset class for tokens, protecting them from the classification as securities and also allowing the federal government to exercise a better regulation of ICOs. Davidson has broken down his news during a blockchain event in Cleveland, which also included Joseph Lubin, one of the founders of Ethereum.
Republicans, which commonly oppose the very notion of regulations, have been rallying the support of digital currencies in Washington through demands of providing better clarification as to the US SEC’s intentions to regulate cryptocurrencies, such as BTC, although digital currency has discovered support from all over the political range.
Earlier this autumn, 12 Republicans and 2 Democrats have submitted a collective letter to the chairman of the Securities and Exchange Commission, Jay Clayton, demanding the authority to specify its exact intentions regarding the cryptocurrency regulations. Among the said signatories was, as you might have already guessed, Congressman Davidson.
The governmental authority that exercises the supervision of the Securities and Exchange Commission, including the US Treasury, the Federal Reserve, and a variety of other financial services policymakers in the United States is the House Financial Services Committee. This August, Davidson sent his invitation to 32 digital currency firms, with intention of gathering them at the Capitol Hill for a conference aimed at discussion of initial coin offerings and regulations connected with them.
In the course of the said discussion, Davidson underline the significance of escaping the severely restrictive legislation which would obstruct the development of innovations. Whereas the legislation is being under discussion, the SEC has proceeded with scrutinizing initial coin offerings and doubling down on fake projects and fraudulent activities.