Warren Davidson, Ohio’s Congressman recently revealed that there are plans to re-introduce the Token Taxonomy Act Bill. The latter was introduced in December 2018, and it focuses on amending certain documents which classify digital assets as securities. The changes will help to give clarity to the cryptocurrency industry.
Warren Davidson Plans to Re-introduce the Token Taxonomy Act Bill
Reportedly, Warren Davidson plans to work alongside Darren Soto, Florida’s Congressman to re-introduce the Token Taxonomy Act Bill. The bill seeks to amend the Securities Act of 1933 and the Securities Exchange Act of 1934 which will stop virtual currencies from being classified as securities.
Also, the SEC (Securities and Exchange Commission) will be directed to make changes to certain regulations that relate to virtual assets. In the same vein, the tax levied on the cryptocurrencies held in retirement accounts will be adjusted.
Tax Exemption for Cryptocurrencies for Other Virtual Assets
The document also proposes the exemption of taxes when virtual assets are exchanged for other assets. Likewise, when these cryptocurrencies are exchanged for fiat, there should be tax exemptions unless the transaction exceeds $600. There’s also the potential of cryptocurrencies to be used for purchasing items.
Furthermore, recommendations have been made that the Securities Act of 1933 is amended to include a definition of digital assets based on the specifications of the bill. One of such definitions states that:
Digital token’ means a digital unit that has a transaction history that is recorded in a distributed, digital ledger or digital data structure in which consensus is achieved through a mathematically verifiable process;
Likewise, a definition has been given for “security” to set them aside from digital tokens explicitly. In this case, the document outlines that while the definition of security is given, the bill acknowledges at the end that “Such term does not include a digital token.” There are expectations that if the bill is passed, it can impact positively on the cryptospace.
Ohio Accepts Bitcoin for Tax Payments, Records Low-Level Interest
That aside, Ohio is reputably known as the first U.S. state to accept bitcoin for taxes. However, a report by BTCNN on February 22 revealed that only two companies in the region have begun paying their taxes using the virtual currency. The latter is not what was expected given the level of excitement that came with the acceptance.
BTCNN on January 11 also informed of Warren Davidson’s comments towards funding Donald Trump’s security wall. The Congressman had suggested that a “buy a brick, build a wall” program should be set up where funds will be raised by the public, through an initial coin offering.