Crypto attorney Jake Chervinsky doesn’t believe that a bill to exempt cryptocurrencies and ICOs from US securities law will be approved anytime soon. He cited the bureaucratic inefficiency of Washington as a key reason for his pessimistic outlook.

“I don’t know if there’s any validity to the rumor that the Token Taxonomy Act will be reintroduced in Congress on February 14,” Chervinsky tweeted. “But even if true, there will be months or years of Committee hearings and revisions before the bill could even possibly see a vote. Don’t hold your breath.”

‘Light-Touch’ Regulation

As it is, the wheels have already been set in motion for the Token Taxonomy Act. In December 2018, Republican Congressman Warren Davidson and Democrat Rep. Darren Soto introduced the legislation.

The Token Taxonomy Act (TTA) would amend the Securities Exchange Act to specifically exclude crypto from securities laws.

This bipartisan legislation draws a bright line for businesses and regulators by defining a “digital token,” and clarifies that securities laws do not apply to companies that use blockchain once they reach their goal of becoming a functional network.

Congressmen: Laws Must Not Choke Innovation

Congressmen Davidson and Soto said the “light-touch” legislation would provide much-needed regulatory clarity to the crypto market. In addition, it would ensure that the United States remains competitive in the burgeoning industry.

In the bill he introduced last month, Davidson reaffirmed the sentiments he expressed in June 2018. “We need a light-touch regulatory framework that provides certainty for the ICO market,” he told CNBC (see video).

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