Lawmakers look to exclude cryptocurrencies from SEC securities definition

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  • Crypto founders and investors have pushed back on the idea that stocks and cryptocurrencies should be defined by the same rulebook.
  • Two congressmen are looking to change that with the ”Token Taxonomy Act,” a bipartisan bill being introduced to the House.
  • This would amend the Securities Exchange Act, which established the current structure for what a security is, and adds a new definition for “digital tokens.”
  • “These decentralized networks don’t fit neatly within the existing regulatory structure,” says blockchain lobbyist Kristin Smith. “This is a step forward in finding the right way to regulate them.”