Amending SEC’s Securities Definition is “The Virus Spreading” – Anthony Pompliano

Anthony Pompliano who is often vocal about cryptocurrency affairs, made a strong comment on US Congress action to exclude cryptocurrency from SEC’s securities definition. He said it as ‘the virus is spreading’.

Token Taxonomy Act,” a bipartisan bill

Reportedly, there are two congressmen introducing new ‘Token Taxonomy Act’, a bipartisan bill presented in the house on Thursday. An effort by Warren Davidson (Republican from Ohio), and Darren Soto (a Democrat from Florida) would exclude virtual currency from the definition of a security that the U.S. SEC is considering presently. This amendment is said to pave the way for a clearer framework for virtual assets.

However, the bill is yet to be passed and crypto enthusiasts are hoping to get a green signal from the government for the proposed bill. As Kate Rooney stated, if it passes, the Congress’s serious effort for cryptocurrency would be massive news in the industry.

Anthony Pompliano – The Virus is Spreading, New Assets Need Proper, Modern Regulations

Anthony Pompliano, the founder and CIO of blockchain based firms, Morgan Creek Digital Assets and Ari Paul and Blocktower – further asserted that the new assets require proper and modern regulations.

The present definition of security is a 72-year-old and request of removing ‘digital currency’ and introducing a new bill has become a hot issue for enthusiasts who were long been waiting for digital assets to have separate laws. Accordingly, reports highlights that ‘Token Taxonomy Act” which defines “Digital token” noted that the ‘securities laws would not apply to cryptocurrencies once they become a fully functioning network’. Moreover, Warren Davidson said in a statement

“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,”

Currently, SEC is in the process to determine whether or not cryptocurrency is security by using ‘Howey Test’ which is based on a 1946 Supreme Court decision. Many views that the effort by these congressmen is a good initiative because the laws which have been determined many decades ago don’t fit the present decentralized industry. As such, Kristin Smith who is the head of the Blockchain Association agreed that;

“These decentralized networks don’t fit neatly within the existing regulatory structure,” continuing that “This is a step forward in finding the right way to regulate them.”

Stay tuned with CoinGape to know more about the approval of the bill and the opinion of Pompliano.

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