Token Taxonomy Act of 2019: The Digital Token Exclusion

A Brief Summary of §§ 2(a) & 2(b) of H.R. 2411

Background

Looks like Bill is taking a little trip to Washington, D.C. — let’s hope he makes it safely!

Scope of this Article


Definition of a Digital Token

First, it must be created for at least one of the following reasons —

Second, it must have a transaction history that is

Third, it must be capable of being transferred between persons without an intermediate custodian

Fourth, it must NOT be a representation of a financial interest in a company or partnership, including an ownership interest or revenue share.


Definition of a Digital Unit

The term ‘digital unit’ means a representation of economic, proprietary, or access rights that is stored in a computer-readable format.

Definition of a Security

The term ‘security’ does not include a digital token.


Conclusion

A computer-readable representation of current or future economic, proprietary, or access rights…

created in a decentralized manner…

recorded to an immutable distributed ledger…

transferable peer-to-peer…

that does not represent a financial interest in a company or partnership…

is NOT a security.


A BILL to amend the Securities Act of 1933 …

SECTION 1. SHORT TITLE.

SEC. 2. SECURITIES ACT OF 1933.



ValueTokenized

Facilitating creation of internet of value for the humankind to be able to transact value as easy and cheap as sending an email.

Grant Gulovsen 高伟明

Written by

https://gulovsen.io

ValueTokenized

Facilitating creation of internet of value for the humankind to be able to transact value as easy and cheap as sending an email.