Bitcoin and cryptocurrency may finally become its own asset class, if a new bill heading to the US Congress becomes law.
US Representative Warren Davidson of Ohio is proposing to bring some much needed clarity to confusion on whether crypto should be categorized as securities, commodities or properties.
According to Cleveland.com, 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 more clear 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.”
Davidson says the bill will help legitimize the blockchain industry, giving new companies the power to raise capital a different way, directly from consumers.
This isn’t the first time the congressman has pushed to advance and legitimize blockchain technology. He co-wrote a letter to the SEC in September, asking for more clarity on regulations before confused tech companies start leaving the country.
“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.”
Davidson announced his plan Monday at the Blockchain Solutions conference, a four day event in downtown Cleveland held to discuss the emerging technology.