Countries like China, India, the UK, Switzerland, and Malta are moving quickly and diligently on blockchain regulation, putting the US at risk of falling behind in the race to be a leader in this revolutionary new technology.

The bipartisan Token Taxonomy Act would support the long-term growth and development of blockchain technology in the US. It also serves to protect investors by establishing a clear taxonomy for what will constitute a security and what will not, and also designates which US Government entity will have jurisdiction and enforcement responsibilities for each classification. The act clearly indicates that the SEC should continue to enforce the laws of the land on any Initial Coin Offering (ICO) that meets the criteria for a security.

In this way, the act strikes a balance between the clear protection of investors, with needed regulatory guidance for the burgeoning field of blockchain technology and its associated financial innovations. This approach is consistent with many other countries around the world that are also addressing this new technology.

Blockchain technology has tremendous potential, and it is crucial that the US remains at the forefront of innovation. Congress needs to act!