A Crypto-Friendly Congressman Seeks to Regulate ICOs
- Republican Warren Davidson, a big fan of blockchain technology, announces plan.
Warren Davidson, a Republican politician from Ohio, is continuing with his quest to get cryptocurrency recognised by law, announcing a plan to create Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( for initial coin offerings.
A different way
He made the announcement at a four-day Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe event in Cleveland, the main purpose of which was to discuss using blockchain in government systems, according to local news source Cleveland.com. Said Davidson: “What this does for entrepreneurs is it gives people an ability to raise capital a different way.”
The report does not reveal details of the proposed legislation, but reportedly it will be introduced "soon".
Preempting a heavy-handed approach
ICOs are when companies sell their digital tokens to the public, with the aim of getting them circulating and making money. Often very large amounts of money are made, and not always (or even usually) for a useful product.
And even in cases where a token-issuing business is legitimate, the US Securities and Exchange Commission awaits to ensure that the business has received approval to sell securities, which is how the SEC defines most digital tokens. SEC Chairman Jay Clayton recently expressed that existing securities laws are adequate to accommodate digital assets, and that the agency has no intention of changing them.
Businesses have tried to work around this, for example by calling their tokens currency or 'utility tokens'; the SEC has not often bought this and has shut down many of these projects. Notable exceptions include when it classified Ethereum tokens as coins in June, and more recently when a federal court defied the regulator in its action against a company called Blockvest.
Davidson is a strong supporter of the new industry. In September he chaired a government hearing where the nation's blockchain businesses expressed their desire for legality. He told them: "Your input is critical to helping us preempt a heavy-handed regulatory approach that could stall innovation and kill the U.S. ICO market."
Nor is he the only one - recent elections in the US gave two Bitcoin-friendly Democratic politicians seats in government too.
Warren Davidson, a Republican politician from Ohio, is continuing with his quest to get cryptocurrency recognised by law, announcing a plan to create Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( for initial coin offerings.
A different way
He made the announcement at a four-day Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe event in Cleveland, the main purpose of which was to discuss using blockchain in government systems, according to local news source Cleveland.com. Said Davidson: “What this does for entrepreneurs is it gives people an ability to raise capital a different way.”
The report does not reveal details of the proposed legislation, but reportedly it will be introduced "soon".
Preempting a heavy-handed approach
ICOs are when companies sell their digital tokens to the public, with the aim of getting them circulating and making money. Often very large amounts of money are made, and not always (or even usually) for a useful product.
And even in cases where a token-issuing business is legitimate, the US Securities and Exchange Commission awaits to ensure that the business has received approval to sell securities, which is how the SEC defines most digital tokens. SEC Chairman Jay Clayton recently expressed that existing securities laws are adequate to accommodate digital assets, and that the agency has no intention of changing them.
Businesses have tried to work around this, for example by calling their tokens currency or 'utility tokens'; the SEC has not often bought this and has shut down many of these projects. Notable exceptions include when it classified Ethereum tokens as coins in June, and more recently when a federal court defied the regulator in its action against a company called Blockvest.
Davidson is a strong supporter of the new industry. In September he chaired a government hearing where the nation's blockchain businesses expressed their desire for legality. He told them: "Your input is critical to helping us preempt a heavy-handed regulatory approach that could stall innovation and kill the U.S. ICO market."
Nor is he the only one - recent elections in the US gave two Bitcoin-friendly Democratic politicians seats in government too.