Token Taxonomy Act 2.0: Cooking Low, and Cooking Slow

Token Taxonomy Act 2.0: Cooking Low, and Cooking Slow

Cook it low and cook it slow: My family’s not-so-secret method to cooking short ribs means that long before those short ribs are even close to being done, the kitchen smells awfully good and the mouths are awfully hungry. And so it is with the legislative push to move blockchain forward: Just like no one in my house wants food poisoning, no one wants a half-baked bill on virtual currency.

The second iteration of the Token Taxonomy Act, released on April 9 and hereinafter referred colloquially as “2.0,” is Congress’ latest product aimed at recognizing and defining a new asset class derived from blockchain technology. This past December, Congressional Reps. Warren Davidson (R-Ohio) and Darren Soto (D-Fla.) released the text of the first Token Taxonomy Act. The initial run of this bipartisan bill never left committee and did not make it to the floor for a vote. The bipartisan team has since released this new and improved 2.0 version of the Act, which can best be described as an evolutionary, rather than revolutionary, piece of legislation. In other words, when it comes to figuring out how to handle cryptocurrencies, Congress is cooking low and cooking slow.

Although the key provisions that I think will appeal to the majority of the Accounting Today readership have not changed at all, the significant changes that did make it to 2.0 give us a good look into Congress’ support for a technological transformation that continues to develop without regard to the price of Bitcoin or other headline virtual currencies.