- Patrick McHenry introduced the Clarity for Digital Tokens Act of 2021
- McHenry supports the “safe-harbor” proposal by SEC Commissioner Hester Peirce.
- The proposal allows crypto companies to launch their own token sale without worrying about existing securities laws.
The House Financial Services Committee ranking member, Patrick McHenry, introduced the “Clarity for Digital Tokens Act of 2021”.
According to the press release, the clarity for the digital tokens act looks to give a “safe harbor for startup digital asset projects, while maintaining important investor protections.”
“The US should be a global leader, not a global follower, when it comes to digital assets,” said McHenry. “Unfortunately, our current regulatory framework threatens to push technology- and the jobs created by this rapidly growing industry overseas”.
The bill would establish a three-year safe harbor for token development teams to offer those tokens for sale without full registration as a securities offering on the condition that the network decentralizes over the course of those three years.
The Clarity for Digital Tokens Act of 2021 from McHenry supports the “safe-harbor” proposal by SEC Commissioner Hester Peirce. The proposal allows the development of a “ functional or decentralized network, under certain conditions, that is exempted from the registration provision of the federal securities laws.”
“The Blockchain Association is proud to support Rep. Patrick McHenry’s Safe Harbor legislation to give a legal landscape for innovators in the cryptocurrency space,” said Kristin Smith, Executive Director, the Blockchain Association. “This regulatory uncertainty has been stifling innovation for years and thereby resulting in an exodus of innovators from the U.S to jurisdictions with a clear regulatory framework.”
Jerry Brito, Executive Director at Coin Center, said adapting the law to account for new realities of these technologies and give “innovators confidence to experiment and grow in the U.S.”
“This legislation has the potential to provide a much needed clear path forward for those creating new innovation and solutions leveraging digital tokens,” said Perianne Boring, Founder and President Chamber of Digital Commerce.
Last Month, Senate Gensler called crypto firms to ‘come in and talk’ and to register their crypto projects with a regulatory body to keep their investments protected.