SEC's Securities Definition May be Changed

Cryptocurrency can be excluded from 72 years old securities definition
21 December 2018   626

Members of the US House of Representatives Warren Davidson and Darren Soto presented a bill excluding “digital tokens” from the definition of securities, approved in the 1930s of the last century.

"Token Taxonomy Act" states that the rules on securities are not applicable in relation to cryptocurrency. The definition of “digital tokens” is also given. The latter are defined in the document as “digital units” that can be created as a result of mining or mining. At the same time, they are governed by rules that cannot be changed by an individual or a group of individuals.

In the early days of the internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. Our intent is to achieve a similar win for America's economy and for American leadership in this innovative space. 

Warren Davidson

Lawmaker, US

 In addition, tokens are said to be transferred between people directly, without intermediaries. It is also noteworthy that digital tokens are not an expression of financial interest in a company, including participation in capital, debt interest or a share of income.

The bill also contains clauses related to taxation, use and sale of cryptocurrencies. In particular, lawmakers propose not to tax profits from transactions with cryptoactive assets, not exceeding $ 600.

Among other things, legislators propose to amend the laws Securities Act (1933) and Securities Exchange Act  (1934), adding to them the definition of digital tokens.

Also, according to the legislator, the US markets must compete with Singapore, Switzerland and other countries that are actively developing blockchain economy. Legislation, according to Davidson, is an essential element for ensuring the US competitiveness in the blockchain technology field.

Bakkt to Release Consumer App This Year

The app can be used for a wide range of tasks, e.g., crypto and securities trading, virtual goods purchase, etc
23 January 2020   101

Institutional Investor Platform Bakkt will release an app for retail investors this year, with which users can pay with cryptocurrency.

According to the president of Bakkt Adam White at the World Economic Forum in Davos, the application can be used for a wide range of tasks. In addition to trading cryptocurrencies, it will support various virtual “goods” like points of loyalty programs.

In addition, in the future it is possible to add securities trading, as well as the creation of a portal for shops and merchants. That is, the application will be more like a traditional fintech product like PayPal than a solution from a cryptocurrency exchange.

Although the Bakkt platform was originally created for institutional investors, the new director of Mike Blandina is very serious about entering the retail market. Earlier, he said that the application for retail investors should be released in the first half of 2020.

I do not think we are there yet. What gives me optimism is that we are seeing a lot of developer interest. I am confident that someone is going to find something.


Adam White

President of Bakkt

 White added that the cryptocurrency market is still underdeveloped.