WASHINGTON, D.C.—On Monday, Rep. Warren Davidson (R-OH) reintroduced his signature Token Taxonomy Act. This bill establishes much looked-for clarity for businesses, consumers, and regulators operating in the growing U.S. blockchain ecosystem.

Currently, a patchwork of laws and regulations creates confusion and even hostility to various blockchain businesses. Without a workable federal regulatory structure, many business and entrepreneurs are taking their businesses overseas where clearer and friendlier laws have established thriving blockchain economies.

Market interest in cryptocurrencies and blockchain technology has continued to grow as certain cryptocurrencies have enjoyed a boom throughout the coronavirus pandemic and as the Biden Administration considers whether or not to continue regulation on private digital wallets started by the Trump Administration.

“The window is closing,” said Rep. Davidson. “If we don’t act quickly, the United States will be left behind. Other countries have found ways to regulate blockchain projects and, in doing so, have made themselves more attractive to entrepreneurs. By establishing the appropriate regulatory environment, we can make sure that the opportunities and advancements that blockchain innovation promises will happen here in the United States, for the benefit of Americans.”

The bill is cosponsored by Reps. Ted Budd (R-NC), Darren Soto (D-FL), Scott Perry (R-PA), and Josh Gottheimer (D-NJ).

“It is time for the United States to step up and lead in blockchain technology,” said Congressman Darren Soto. “The bills Rep. Davidson and I have collaborated on add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States.  This is an important first-step to promoting innovation and maximizing the potential of virtual currencies for the U.S. economy, all while protecting customers and the financial well-being of investors. The strong support for this bipartisan legislation from U.S. businesses and stakeholders is clear indication that our friendly, light-regulatory proposal will propel the United States to be at the forefront of this industry.”

Congressman Ted Budd agreed. “The Token Taxonomy Act will make sure the development of blockchain technology stays in the United States while promoting better investor protections, capital formation, and innovation. We need big, 21st century ideas to grow our economy and innovate for the future. The Token Taxonomy Act is one of those bold ideas.”

“As we continue to innovate with blockchain technology, it's clear that there needs to be a framework in place that not only provides a much clearer path forward for open blockchain projects, but also establishes the United States as a leading force in this emerging sector," said Congressman Josh Gottheimer (NJ-5), a member of the House Financial Services Committee. "That's why I'm proud to help introduce the bipartisan Token Taxonomy Act and look forward to working with my colleagues on both sides of the aisle to get this legislation passed."

Kristin Smith, executive director of the Blockchain Association, also endorsed the bill: “It’s important that members of Congress engage with vital questions of regulatory clarity and the future of the crypto economy in the United States. We’re pleased that Representative Davidson continues to show sustained and insightful commitment to getting the answers to these big questions right.”