Wyoming, the state in the United States, has introduced legislation to create crypto regulations. The new law would grant Crypto DAOs legal approval and exclude digital tokens from being considered a form of securities, which could shape future legislation.
Warren Davidson Re-introduces “Token Taxonomy Act” for Crypto Regulations
After two failed attempts to introduce legislation to make cryptocurrency and digital assets exempt from US Securities regulations in 2018 and 2019, Representative Warren Davidson has re-introduced the bill.
It is being co-sponsored by Representatives Darren Soto, Josh Gottheimer, Ted Budd, and Perry Scott, which makes this a bipartisan effort.
The act aims to “amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to exclude digital tokens from the definition of a security”, a topic that has become increasingly relevant after the complaint filed by the Securities and Exchange Commission (SEC) against Ripple Labs back in 2020.
If the act was to be approved, the SEC would have to make changes to how it taxes virtual currencies, how securities are defined, create a “de minimis” exemption for gains resulting from the sale or exchange of cryptocurrencies not involving cash.
Representative Davidson referred to the urgency of passing the act by stating:
“The window is closing. If we don’t act quickly, the United States will be left behind. Other countries have found ways to regulate blockchain projects and, in doing so, have made themselves more attractive to entrepreneurs.”
The act would not only facilitate how American companies participate in the cryptocurrency market or launch their own products but also benefits millions of potential investors by providing more clarity on the taxation of cryptocurrencies not involving dollar conversions.
Wyoming Is One Step Closer to Granting Legality to DAOs
The Wyoming state marked a milestone for DAOs back on Tuesday 9th when the senate’s committee approved Wyoming Senate…