Sponsors
11 Republican
Tom Emmer Jr.MN-6
This bill proposes to amend various federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. Its primary aim is to exclude 'investment contract assets' from the definition of a 'security' under these laws. An 'investment contract asset' is defined as a fungible digital representation of value, exclusively possessable and transferable person-to-person without an intermediary, recorded on a cryptographically secured public distributed ledger, and sold pursuant to an investment contract, but not otherwise a security.
This bill provides significant regulatory clarity for the crypto industry by distinguishing between an investment contract (the sale of an asset) and the underlying digital asset itself. By explicitly stating that a fungible digital asset, once distributed on a public distributed ledger and transferable peer-to-peer, is not a security, it addresses a major point of contention and regulatory uncertainty. This framework acknowledges that while an initial offering might be an investment contract, the asset's secondary trading should not automatically fall under securities laws if the asset meets the specified criteria for decentralization and independent transferability. This reduces arbitrary regulatory risk, enables lawful crypto activity, and directly counters broad interpretations that categorize most crypto tokens as securities, fostering a more predictable environment for builders and users in the crypto space.
Every member who has sponsored, cosponsored or voted on this bill. Pick a vote to see how each member voted on it, or narrow by party, name or state.
1 Republican
1 Democrat
