[An Official GlobalCryptoPress.com Report] – As the reporter who broke the story months ago (read "Exclusive: US Congress members to submit major pro-cryptocurrency bill" article here) I've been following the progress of the Token Taxonomy Act closely - it's a bill that solves the regulatory uncertainty issue once and for all, and that has huge implication for the market.

Those plans we shared, just went into action! The bill is officially submitted to Congress, and the first step of becoming law is now underway.

For those catching up, here's everything you need to to know:

"...the bill would implement the one vital and important change the markets truly need for a full-on comeback, by giving tokens their proper legal classification, and thus allow US citizens once again to have the freedom to fully participle in the markets.

In the US cryptocurrencies are being legally classified 'securities' so oversight of them goes to the Securities Exchange Commission (SEC). The Token Taxonomy Act takes this on directly and removes the 'security' classification, and the SEC oversight."

To understand why this is so important, you need to understand how awful the current regulatory situation is:

"Cryptocurrency and blockchain technology are often mentioned alongside Artificial Intelligence and IOT technology as the 'cutting edge' tech of our time - but cryptocurrency is the only one being held back by government regulations written in the 1940's.

While cryptocurrencies are intended to be freely exchanged, the laws surrounding them are so outdated they were written for the stock market at a time when stocks were traded on paper certificates.  In fact, the hot new technology when these regulations were written - color TV."

Not just something nice for crypto traders - the US has suffered some real economic damage in the meantime:

"Companies involved in the cryptocurrency space that began in the US packed up and left, taking the jobs with them.  When a company leaves - no more tax revenue for the state and federal government either. 

No one wanted to risk building something that could be torn down the next day - even if they conducted honest ethical business. The law meant that a company based around a cryptocurrency could still be shut down - simply for existing as an 'unlicensed security'."

It's always important to note the following, because if there is an attack on the bill it will be from this angle - but it does NOT make things easier for scammers and fraudulent ICOs. Fraud is illegal, lying to investors is illegal - this does not change if cryptocurrencies are no longer classified as a security.

The only change we imagine in this regard is that the CFTC would likely be the agency pressing these fraud charges instead of the SEC - as crypto changes from a security and to a commodity.

Now the next big question is - will it pass?

I believe YES, it will - I've outlined in depth why it looks like this bill will be met with approval at every step of the process in another report titled "Why the new pro-cryptocurrency bills WILL PASS and become law..." you can read that here.

Next we can expect Congressional committees will examine the bill in depth, suggest possible amendments, then it goes up for a vote.  This process can take weeks or months, depending on the levels of support or opposition. 

You can find the full bill online here.

-------
Author: Ross Davis 
E-Mail: [email protected] Twitter:@RossFM
San Francisco News Desk / GlobalCryptoPress.com

[This has been an official report from The Crypto Press Association - GlobalCryptoPress.com ]