Congressman Presents Bill to Greenlight Crypto Startups Selling Tokens

Full article by Scott Chipolina found here.

• Representative Patrick McHenry (R-NC) proposed the Clarity for Digital Tokens Act of 2021, providing legislative backing to SEC Commissioner Hester Pierce’s “safe harbor” approach to cryptocurrency regulation.

• This would enable crypto companies to legally launch their own token sales (initial coin offerings) without having to worry about the existing securities legislation in the U.S.

• Crypto startups would have three years to show “network maturity” and become decentralized to the level that that their tokens no longer fit the definition of securities under federal law.

• Startups would have to disclose the source code, transaction history, tokenomics, and other details of the project to fall under this new category outside of security regulation.

• McHenry stands to challenge the the the approaches taken towards regulating crypto this year, stating that “my bill, which builds on the great work of the SEC Commissioner Hester Pierce, will provide the necessary legal certainty to digital asset projects when they launch,” and that “our currently regulatory framework unfortunately threatens to push this technology, and jobs created by the growing industry, overseas.”