BX3 Capital Talks The Token Taxonomy Act And Mobile Payments

BX3 Capital Talks The Token Taxonomy Act And Mobile Payments

Crypto lovers, take note: one bit of news recently arrived for us to consider as BX3 Capital sent word our way via its partner Mike Minihan about the Token Taxonomy Bill. You might not have heard of this legislation amidst all the clamor over the wall and the government shutdown, but this little slice of legislation may be poised to give the cryptocurrency side of mobile payments new life.

The Token Taxonomy Bill, Minihan notes, is the result of a lot of input from cryptocurrency industry thought leaders who went to Washington with one point in mind: prevent the establishment of ”regulation by enforcement,” the kind of legislation that would ultimately strangle innovation in the field and attach rules like so many lamprey to the underside of the cryptocurrency market’s belly.

Bipartisan in nature, the bill defines a “digital token.” In this case, it’s a result of “…a blockchain-based consensus process,” as opposed to a “…representation of a financial interest in a company, including an ownership or debt interest or revenue share.” This gives the Securities Act of 1933 a shot in the arm and brings it forward into a future that includes cryptocurrency.