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U.S. Congressman Warren Davidson Plans To Regulate Cryptocurrency, ICOs

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Warren Davidson, the U.S. representative from Ohio's 8th congressional district, announced a plan to regulate cryptocurrency and initial coin offerings or ICOs through the federal government, local Ohio news agency Cleveland.com reported.

While talking at the Blockchain Solutions conference in downtown Cleveland, Davidson announced his intention to introduce new legislation. The planned bill could create an asset class for cryptocurrencies and digital assets, which would prevent them from being classified as securities, and would also allow the federal government to regulate initial coin offerings more effectively.

The move would make cryptocurrencies one step closer to getting legality and bring clarity to U.S. crypto regulation.

Earlier too, Davidson has expressed his support for the crypto industry. He had suggested that the ICO market needed light touch regulation.

In recent times, many other U.S. legislators have supported cryptocurrencies and talked about its legalization. In late September, Tom Emmer, the co-chair of the Congressional Blockchain Caucus, said he would introduce three bills to support blockchain technology and digital currencies.

Earlier, a group of US Representatives had sent an open letter to the Internal Revenue Service or IRS seeking provisional guidelines on how digital currency transactions and investments should be handled when taxpayers file their income tax return.

In early October, U.S. Representatives Doris Matsui and Brett Guthrie introduced a bill aiming to establish a common definition of blockchain technology.

At present, various government agencies classify cryptocurrencies differently. For the Securities and Exchanges Commission, most cryptocurrencies are securities, while the Commodity Futures Trading Commission or CFTC treats such currencies as commodities.

The Financial Crimes Enforcement Network or FINCEN, the agency managing anti-money laundering and know your client standards, considers crypto as money, while the Internal Revenue Service treats cryptocurrencies as property.

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