US Congressman wants Bitcoin and Cryptocurrency to be declared as a New Asset ClassDecember 6, 2018
Probabilities are high for Bitcoin and cryptocurrency to be eventually declared as an asset class of their own kind. This will fructify if the new Bill promoted by the US Congress is enacted to be the law.
Warren Davidson of Ohio is all set to bring in some clarity on whether cryptocurrency should be classified as commodity, security, or property.
Warren Davidson of Ohio is the Republican from the 8th District. He is planning to introduce legislation in the House of Representatives. The legislation will focus on creating a new asset class for cryptocurrencies and the initial coin offerings (ICOs). Creating the right asset class for cryptocurrency will provide more clarity when it comes to setting government regulation for the cryptocurrency.
The major focus of the bill is to classify cryptocurrency as an asset class in itself. The bill prevents classifying cryptocurrency as a security. If the cryptocurrency was classified as a security, then the federal government will be empowered to regulate the initial coin offerings.
The bill will ensure legalizing the blockchain industry. This will give new companies with the option to raise funds pretty effectively. It will be thus possible to raise funds from consumers.
Well, this is not the first time where attempts are being made to legitimize the blockchain technology. In September, Warren Davidson of Ohio, co-authored a letter to the SEC. In the letter, he required more clarity on the applicable regulations. He required this clarity stating that regulations should be clear to prevent blockchain technology companies from leaving the country.
In the current scenario, there is a lot of uncertainty around how the offer and sales of the digital tokens are to be treated. The confusion around regulations and the unsure nature of the way the digital tokens are treated, is already hindering the innovation related to blockchain technology in the United States and the business is going elsewhere. It is for the SEC to clarify this position, which he meant by stating,
“Current uncertainty surrounding treatment of offers and sales of digital tokens are hindering innovation in the United States and will ultimately drive business elsewhere. We believe that SEC could do more to clarify its position.”
This plan was declared by Davidson on Monday when he participated at the Blockchain Solutions conference. It was a 4-day event organized in Downtown, Cleveland. This conference was held to discuss emerging technology.