U.S. Lawmakers Introduce ‘Digital Taxonomy’ Bill Allocating $25 Million To Fight Against Crypto Crime
U.S legislators on April 9 introduced the Digital Taxonomy Act of 2019.
The bill seeks to allocate $25 million every year to the Federal Trade Commission (FTC) to help curb blockchain fraud and other crypto-related crimes.
Rep. Darren Soto (D), a pro-crypto legislator from the 9th District of Florida, introduced the bill to the U.S. House of Representatives. The document seeks to augment FTC’s role in combating nefarious activities within the crypto ecosystem.
It also wants the funds used to empower the FTC in the push to investors are protected from potential manipulation related to digital token transactions.
The new Digital Taxonomy Act states that the FTC should be funded with $25 million yearly beginning from next year to 2024.
The purpose of the money is to streamline the cryptocurrency industry by minimizing fraud, illegal use of crypto and money laundering.
The bill provides succinct definitions of some core terms related to cryptocurrency, including tokens, distributed ledger technology, and a digital unit.
Once the bill passes into law, the FTC will be required to submit a report to the Congress concerning the various actions it has instituted to tackle issues related to crypto and its use in illicit undertakings.
The commission will also have to draft and table a crypto-related regulatory plan before the committees on Energy and Commerce in the House of Representatives.
A similar report would also have to be tabled before the Senate’s Committee on Commerce, Science, and Transportation. The reports would be submitted annually.
Meanwhile, legislators also re-introduced another bill labeled the Token Taxonomy Act of 2019. Submitted the same day, the act seeks to exclude cryptocurrencies from the purview of securities laws.
First tabled in December 2018 by Rep.Warren Davidson (R) and Rep. Soto, the bill is seeking amendments to the Securities Act of 1933 and 1934 to align them to the new assets.
The document’s latest version also looks to clarify the role of the FTC as well as the Commodity Futures Trading Commission (CFTC).
Moreover, the bill seeks to assure U.S. investors and players in the blockchain and crypto industry of regulatory certainty. Accordingly, the bill wants clarity offered regarding the ambiguous State regulations and laws that are likely to discourage investors.
Lawmakers in Michigan also passed a bill that seeks to add offenses related to cryptocurrencies to the state’s Penal code.
Disclaimer: 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.