US Lawmakers File Bill to Exempt Cryptocurrencies from Securities Laws

Two members of the U.S. House of Representatives are seeking to exempt cryptocurrencies and certain other digital assets from federal securities laws.

According to the text, the bill - among other items - seeks to exclude "Digital tokens" from being defined as securities, amending both the Securities Act of 1933 and the Securities Exchange Act of 1934.

The bill defines "Digital tokens" as "Digital units created in response to the verification or collection of proposed transactions" or "As an initial allocation of digital units that will otherwise be created".

"This bill provides the certainty American markets need to compete with Singapore, Switzerland, and others who are aggressively growing their blockchain economies," Davidson said in a statement.

The bill includes other crypto-friendly measures as well, including parts that focus on the tax implications of buying, selling or using cryptocurrencies.

It mirrors language in a bill introduced in September 2017 that sought to create a de minimis exemption for purchases made with cryptocurrency.

"The amount of gain excluded from gross income under subsection with respect to a sale or exchange of virtual currency shall not exceed $600," the new bill states.

The bill seeks to make exchanges of one cryptocurrency for another tax-exempt and to create an additional exemption for individual retirement accounts alongside those that exist for gold bullion and other precious metal coins.

The Washington, D.C. industry advocacy group Coin Center celebrated the bill in a blog post on Thursday.

Thursday's proposals aside, the lawmakers suggested in statements that the bill seeks to lay the groundwork for further regulatory measures.