US Congressman Plans to introduce Bill to Protect Token Sales from the SEC
A pro-crypto congressional representative announced that he would introduce a bill to protect token sales from the SEC. The announcement was made during a hearing in Congress about the Facebook Libra project. Tom Emmer, who is a Republican Congressman from Minnesota, accused the SEC of overreach.
SEC Rules are Outdated
According to Tom Emmer, the rules by the SEC were unclear, which had caused many innovators a lot of anxiety. Many experts in the crypto space claim that the Howey Test used by the SEC is outdated. As a result, there was a need to update the rules.
Emmer is of the opinion that there is a need to find an acceptable solution where market players and the SEC find a common denominator of how to regulate the space. According to Emmer, this common ground would entail the SEC only exerting its influence on digital assets which are clearly securities.
Various token sales have been stopped by the legal actions of US regulators. These include the KIN token sale and Telegram’s TON sale. Besides that, the SEC has adopted a hostile stance when it comes to Bitcoin ETFs. Thus far, it has not approved any Bitcoin ETF, which has caused many to conclude that this is not likely to change any time soon.
Emmer has Been Pro-Crypto All Along
This is not the first pro-crypto action by Tom Emmer. He had already made his stance clear on crypto earlier when he introduced the ‘Safe Harbor for Tax Payers with Forked Assets Act of 2019’ at the start of 2019. The act was seeking to exclude airdrops and crypto forks from being considered taxable events.
How far the lawmaker and others like him are willing to go to protect crypto has yet to be seen. His latest bill has not been presented before the House yet. Even if it is, there is no telling whether it will pass. It is also likely that by the time the bill passes, the existing dispute between the SEC and token issuers such as Telegram and KIK will likely have been solved.