Soto Helps Steer Bipartisan Efforts to Regulate Cryptocurrency

Soto Helps Steer Bipartisan Efforts to Regulate Cryptocurrency

Daniel Molina
Daniel Molina
|
December 31, 2018

Right as he’s about to start his second term in Congress, Florida Democrat representative Darren Soto is focusing on how cryptocurrency should be regulated.

Along with Republican representative Warren Davidson, right before Christmas, Soto introduced the “Token Taxonomy Act,” which his office explains will “provide light-touch regulatory certainty for businesses, entrepreneurs, and regulators in the blockchain economy.” As well, the bill “draws a bright line for businesses and regulators by defining a ‘digital token’ and clarifies that securities laws do not apply to companies that use blockchain once they reach their goal of becoming a functional network.”

Soto added that “The Federal Trade Commission (FTC) has a history of policing web services, while the Commodities Futures Trading Commission (CFTC) has authority over commodity derivatives. To what extent does the jurisdiction of the FTC apply to digital tokens? Can we address this issue in this legislation or will we need subsequent legislation to effectively regulate this emerging sector?”

In addition, December also saw Soto teaming up with Republican representative Ted Budd to introduce two other bills that also focus on cryptocurrency.

The bills titled the "U.S. Virtual Currency Market and Regulatory Competitiveness Act” and the “Virtual Currency Consumer Protection Act” “will analyze what can be done to protect consumers from price manipulation and to ensure America remains a global leader in fostering innovation in this evolving global marketplace.”

In a joint statement, the representatives detailed that “Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth. That’s why we must ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while also promoting an environment of innovation to maximize the potential of these technological advances. This bill will provide data on how Congress can best mitigate these risks while propelling development that benefits our economy.”

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Daniel Molina

Daniel Molina

Daniel Molina is an award-winning senior reporter based in Miami. He holds a bachelor’s degree in English Literature from Florida International University. His hobbies include reading, writing, and watching films.

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