Regulations by SEC are not suitable for crypto as two lawmakers aim to re-write the law

One of the most debated issues when it comes to cryptocurrencies not only in the United States but also around the world has been clarity for digital assets and what rules govern them.

Regulations by SEC are not suitable for crypto as the SEC has continuously cracked down cryptocurrency projects such as token sales and exchanges which do not comply with the existing security laws.

Clear regulations for cryptocurrencies are on the way

As reported by CNBC, two U.S. lawmakers are gearing up towards bringing clearer regulations to the cryptocurrency space as they believe the current regulations by SEC are not suitable for crypto.

Warren Davidson of Ohio and Darren Soto of Florida have introduced the Token Taxonomy Act which is aimed at excluding cryptocurrencies from securities category.

Cryptocurrencies currently fall under a 70 years old law, Howey Test which according to the lawmakers, does not include decentralized assets such as cryptocurrencies.

“These decentralized networks don’t fit neatly within existing regulatory structure” Kristin Smith

This proposed bill is said to have a clear definition for cryptocurrencies as this has not been the case since the creation of Bitcoin in 2009.

One of the motivations behind the law makers backing cryptocurrencies is out of concern that the U.S. might miss out on this exciting innovation should they chase out the technology with strict regulations.

“In the early days of the internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. Our intent is to achieve a similar win for America’s economy and for American leadership in this innovative space” Davidson

This news is coming at a time when Bitcoin and the entire market is seeing some green after days of price decline. Bitcoin is currently trading at $4000 while Bitcoin Cash has seen more than a 50% increase in price in the last 24 hours.

What are your thoughts on this proposition for more clarity within the space? Feel free to comment below.


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