Ohio Congressman To Push Bill That Will Remove Crypto From SEC Jurisdiction And Benefit ICOs
The U.S Securities and Exchanges Commission (SEC) has in the last few months disapproved several Bitcoin exchange-traded funds (ETFs), with the agency’s unrelenting regulatory scrutiny a concern for crypto proponents.
In the U.S Congress, Jared Polis has steadily been the voice that spoke for everything pro-crypto. His election as the governor of Colorado appeared to leave a void.
That, however, won’t be the case with the re-election of Warren Davidson continuing his opposition to potentially harmful regulations against initial coin offerings (ICOs) and cryptocurrency.
The Washington Examiner recently reported that Davidson, the Ohio member who sits on the House Financial Services Committee, has indicated that he will continue to push for an agenda that positively impact the crypto industry.
The Ohio representative signaled his intention in September by hosting a top-level meet-up of crypto and ICO personalities and companies at Capitol Hill. The summit was to assess the situation as it is about cryptocurrencies, especially after the SEC appeared to be outrightly opposed to an ETF.
The legislator’s press office has reportedly confirmed that the Ohio Republican has mulled over a House bill that should see ICOs be exempt from the securities laws, whose enactment would remove the SEC’s jurisdiction as tokens are treated as products, and not securities.
Davidson may be banking on the bipartisan makeup of the Congressional Blockchain Caucus, though as it appears, he may have a hard time getting the numbers to upstage stated stances from the government.
In that respect, the Examiner reports that Craig Phillips, an advisor to the Treasury Secretary, said earlier this week that their department might have its ideas and policies about cryptocurrencies, which it would be releasing soon.
The Democrats may also not be so forthcoming regarding the proposed bill. And it appears having a negative stance against crypto doesn’t always impact a politician’s chances.
For example, New York Democrat Carolyn Maloney easily got re-elected with over 85 percent of the vote despite her public comments that cautioned against cryptocurrencies and ICOs.
Incidentally, Maloney also sits on the House Financial Services Committee as does Davidson. However, her 20-years experience in the House dwarfs Davidson’s measly five.
Although the difference may not mean much to those within the crypto community, the gap may count- especially if the opponent is a seasoned politician with very little affection for the cryptocurrency.
SEC chairman Clayton told Congress earlier this year that all ICO-issued tokens were essentially security tokens and that the agency would not change its position on the matter just to accommodate startups that have raised billions via the private sale of digital currencies.
Davidson’s bill thus seeks to protect any future token issuers from such treatment from the SEC.
Recent developments in the crypto industry have, however, meant that cryptocurrency startups are beginning to look at other methods of raising funds, including through traditional venture capital and security token offerings.
As crypto-friendly lawmakers see the legal route as the best way to get rid of restrictive regulations, the crypto market continues to await broader adoption and investor confidence return after a mostly bearish year.
This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.