A “protective” bill for cryptocurrency tasks has just been presented to the US House of Representatives by a senior member of the Financial Services Committee.
On October five, Representative Patrick McHenry, a senior member of the Financial Services Committee of the United States House of Representatives, presented a draft of the Digital Token Clarification Act 2021.
The bill would be primarily based on the “Safe Harbor” provision of the Securities Act of 1933, which grants cryptocurrency tasks 3 many years of legal immunity to freely situation tokens without having possessing to register for a sale of securities. throughout this time time period.
In addition, the token issuer will have to disclose details about the undertaking to the public. This details incorporates the undertaking supply code, improvement prepare, token sale details, token circulation policy, preliminary token issuance, complete token provide, token unlocking plan, and existing quantity of tokens.
McHenry’s Safe Harbor bill was proposed by Commissioner Hester Pierce of the United States Securities and Exchange Commission (SEC), an official who has prolonged been a supporter of the cryptocurrency market.
Mr. McHenry stated:
“Unfortunately, our existing legislation threatens to push this new technological innovation and the job options it has overseas. My bill, in collaboration with SEC Commissioner Hester Pierce, will give legal clarity to assistance tasks at launch. “
Notably, the bill was presented to the House by Congressman McHenry just half an hour ahead of the Financial Services Committee had a hearing with SEC Chairman Gary Gensler. Mr. McHenry also sent a letter to Mr. Gensler, asking the SEC chief to clarify the agency’s purpose in regulating exchanges and stablecoins.
Previously, as reported by Coinlive, the SEC chairman has repeatedly stated that a lot of crypto tokens are truly securities, and thus have to be registered with the SEC to be absolutely regulated.
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