Cointelegraph.com

The Token Taxonomy Act of 2021: Preemption of inconsistent state laws

A deep analysis of the proposed definition of digital token, which is likely to be far simpler than the Howey Test.
In these hyper-partisan times, any bill that includes sponsors from both sides of the aisle is noteworthy. There is one pending now that is particularly important in the crypto space. On March 8, 2021, H.R. 1628, the Token Taxonomy Act of 2021, was introduced by representative Warren Davidson. It was co-sponsored by representatives Ted Budd, Darren Soto, Scott Perry and Josh Gottheimer.Terms of the Token Taxonomy Act of 2021Among other provisions, the bill would exempt “digital tokens” from the definition of security, and it would also preempt inconsistent state regulation. Crypto assets would need to meet certain specified requirements in order to count as “digital tokens” under this act:First, the interest must be created either in response to the verification of proposed transactions, or pursuant to rules for creation that cannot be altered by any single person or persons under common control, or “as an initial allocation of digital units that will otherwise be created in accordance” with either of the first two options.Second, the assets must have a transaction history recorded in a distributed digital ledger or data structure on which consensus is reached via a mathematically verifiable process.Third, after consensus is reached, the transaction record must resist modification by any single person or persons under common control.Fourth, the interest must be transferable in peer-to-peer transactions, and fifth, it cannot be a representation of a conventional …
Story continues on Cointelegraph

Related posts
BitcoinBTC priceCointelegraph.comFundinginflowsStablecoin

Bitcoin price dips below $60K — But here's why a bigger rally may be brewing

Bitcoin dropped below $60,000 on Sunday after new all-time highs, but stablecoin inflows show this is not a big concern. Bitcoin (BTC) pared some gains, dipping below $60,000 on March 14, a day after setting a new all-time high of…
Cointelegraph.com

The superheated NFTs? A crypto market niche tipped to boom or bust

A pyramid scheme where “somebody will be burnt” or an “exciting innovation?” Is this the year of the nonfungible token? In a whirlwind seven-day period, which began with Twitter founder Jack Dorsey proving that almost anything can be tokenized —…
Bitcoin WalletCointelegraph.comhardware-wallethot walletMobile Walletpaper walletwallet

Crypto wallets in 2021: From hot to cold, here are the options

The main thing regarding crypto wallets today is the safety and responsibility of users. After another jump in the price of major cryptocurrencies at the end of 2020, crypto enthusiasts began to mine, sell and buy currencies with renewed vigor…