Davidson Reintroduces Token Taxonomy Act

U.S. Representative Warren Davidson reintroduced the Token Taxonomy Act, a bill designed to provide regulatory clarity to blockchain-based businesses and digital currency users, according to a press release sent to Bitcoin Magazine.

If passed, the act would amend the Securities Act and Securities Exchange Act to exclude “digital tokens from the definition of a security” and direct the U.S. Securities and Exchange Commission to make regulatory changes in how it views “digital units secured through public key cartography,” per the bill text. It would also adjust taxation rules and institute exemptions for digital currency exchanges and gains.