Ohio Congressman Warren Davidson plans to introduce a new bill that will allow Initial Coin Offerings (ICOs) to “sidestep” U.S. Securities Laws. The ill proposes that ICOs be treated as products rather than as Securities at the federal and state level. The move would “eliminate” the U.S. Securities and Exchange Commission (SEC)’s oversight of the industry.
While the congressman aspires to seal bipartisan support for his bill, the deregulatory impulse of his project would unlikely win favor among the incoming Democratic majority in the U.S. House of Representatives.
As an added factor, there have been some signals from the Trump Administration – specifically Craig Phillips, senior adviser to Treasury Secretary Steven Mnuchin – who have reportedly hinted the department will advance its own crypto-related policy ideas.
Startups in the crypto and blockchain space are already “sidestepping” securities laws by turning to “traditional” venture capital (VC) funding in lieu of public or private token sales.