What You Need to Know
- It would classify digital tokens and other crypto-assets as investment contract assets rather than securities subject to SEC regulation.
- Ric Edelman and Matt Hougan applauded the bill as helping to unleash the innovative potential of crypto-assets.
- The bill classifies digital tokens as investment contract assets rather than investment contracts, which are securities.
A bipartisan bill recently introduced in the House of Representatives would classify digital tokens and other crypto-assets as investment contract assets rather than securities subject to regulation under the Securities Act of 1933 and 1934.
Rep. Tom Emmer (R-Minn.) who introduced the bill, known as the Securities Clarity Act, with Reps. Darren Soto (D-Fla.) and Ro Khanna (D-Calif.), said in a statement that the current “unreasonable approach by regulators as to how federal securities laws should be applied to transactions involving the sale of blockchain-based tokens” is “hurting American innovation.”
They continued, “Between regulation by enforcement and the varying legal decisions regarding the classification of these assets, regulatory uncertainty has hindered the growth of blockchain technology, leaving many to take the technology overseas.”
Emmer said assets like digital tokens are commodities.