The US officials have put forward a motion to rule out the notion digital token from the definition of a security in the Securities Act of 1933.
Congressmen Warren Davidson and Darren Soto believe that the securities guidelines cannot be applied to the cryptocurrencies. Moreover, the proposal covers the description of the notion – digital token. Specifically, the document states that a digital token is a digital unit that are the results of mining and remains, but they are regulated by the rules that cannot be "altered by a single by a single person or a group of persons".
The Securities Act suggests that the digital token "is created in response to the verification or collection of proposed transactions and has a transaction history that is recorded in a distributed, digital ledger or digital data structure which consensus is achieved through a mathematically verifiable process".
The draft bill also covers such issues as taxation, use and sales of the cryptos. It has been proposed to lift taxes from crypto deals with income up to $600.
Moreover, the congressmen point out the need to expand the Securities Act of 1933 and the Securities Trading Act of 1934 by adding the definition of the digital tokens.
One of the officials stated that the US markets must be able to compete with Singapore and Switzerland in terms of blockchain-based economy, and the legislation is said to play an important role in boosting American competitive position in the blockchain sector.