What Will Facebook’s Libra Bring To The Token Taxonomy Act?

What Will Facebook’s Libra Bring To The Token Taxonomy Act?

Everyone’s abuzz over Libra and what it will mean for Facebook users. But here’s another point to consider: How will Congress legislate cryptocurrency now? Will the Token Taxonomy Act finally get passed?

Mike Minihan, partner and tax expert at BX3 Capital, a business advisory firm that helps companies get established with fundraising and professional services, has the following thoughts on Libra and the Token Taxonomy Act.

Why is regulation for cryptocurrency-backed securities so important for the US economy? 

It may seem counterintuitive that regulation would be helpful for business but in the case of businesses that rely on a cryptocurrency component, the lack of regulation is harmful.  The uncertainty that surrounds a business’s operations because of inadequate regulation (in a largely regulated economy) acts as a deterrent to those with good ideas who fear draconian measures when regulation inevitably comes.