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Token Taxonomy Act makes comeback; proposes removal of cryptocurrencies from umbrella of securities

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Token Taxonomy Act makes comeback; proposes the removal of cryptocurrencies from the umbrella of securities
Source: Pixabay

Cryptocurrencies being characterized as securities may soon fade away, courtesy of the reintroduction of the Token Taxonomy Act in the United States House of Representatives. Proponents of the decentralized currency realm have long contested decentralized currencies being labeled with the securities tag.

Proposed by Representative Warren Davidson (R), the Token Taxonomy Act will amend the infamous Securities Act of 1933 and the Securities Act of 1934, thereby removing cryptocurrencies from under the umbrella of securities. The act was also attested by Darren Soto (D), Josh Gottheimer (D), Ted Budd (R), and Presidential candidate, Tulsi Gabbard (D), who is a known crypto-investor.

The importance of the act was spelled out by Davidson, who stated that sans the act, the United States would cede the digital economy to emerging markets of the east. He stated,

“Without it, the U.S. is surrendering its innovative origins and ownership of the digital economy to Europe and Asia. Passing this legislation, Congress would send a powerful message to innovators and investors around the world that the U.S. is the best destination for blockchain technology.”

In December 2018, during the close of the legislative season, the Token Taxonomy Act was first introduced. However, it didn’t make much headway then. The recent version will clarify the powers of regulatory bodies like the Commodity Futures Trading Commission [CFTC] and the Federal Trade Commission [FTC].

However, all is not bright. The Act also looks to supersede pre-existing state laws regarding the domestic cryptocurrency industry within its borders. In legal terms, the Token Taxonomy Act will add to the National Securities Markets Improvement Act, which will increase the federal government’s power over the decentralized currency field.

This will be an unprecedented withdrawal of state power in light of the center’s overreach, many legal and crypto-analysts commented. States would cede digital assets regulation to the Federal government, in what will be a blow to not just decentralized currency, but also decentralized governance.



Several analysts have pointed out the semantic confusion that will exist when legislation for a “digital token,” or a “virtual currency” will take place. This will lead to a legal vacuum, leading to the emergence of more problems.

On the bright side, the act will allow the token seller to undercut regulatory supervision, if they can justifiably prove that they weren’t selling securities.





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Basic Attention Token surges by over 6% as Ad Launch nears

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Baisc Attention Token surged by over 6% over ads launch hype
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The cryptocurrency market appears to be bleeding, however, few altcoins have reported small surges over the past few days, like Basic Attention Token [BAT].

The coin, on April 18 when the entire market was mostly red, surged by over 10% and was trading at $0.3618, its all-time high since July 2018. On April 20, BAT reported a growth of over 6% and was valued at $0.3947, breaking its immediate resistance.

Source: CoinMarketCap

Source: CoinMarketCap

BAT reported a market cap of $493 million and a 24-hour trading volume of $57 million. The coin noted a 6.47% rise in its price over the past day and reported a seven-day surge of 31.20%. BAT continued to register a growth of 1.18% over the past hour.



Crypto-enthusiasts speculate the reason for the surge in prices to be the launch of advertisements on the Brave Browser this month. The BAT token is essentially based on entertainment and can be obtained through a variety of advertising and attention-based services on its platform. According to Twitter user @CryptoNilla,

“They are about to launch ads this month hence the pump.”

BAT was highly traded on ZB.COM exchange as it noted a volume of $8 million via the BAT/USDT pair. The second place was taken by Binance, the largest cryptocurrency exchange as it reported a trading volume of $7 million via the BAT/BTC pair. IDCM was on the third place with $6 million in volume via the BTA/BTC pair.





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