- Yang has promised to give clear guidelines on crypto assets
- He will focus on the Token Taxonomy Act
- He is the only prudential hopeful to focus on crypto
One candidate seeking to challenge U.S. president Donald Trump during the 2020 presidential elections is promising to create clear guidelines in the world of digital assets to enable businesses and individuals invest and innovate in the area without fearing a heavy regulatory shift.
A National Regulatory Framework
Andrew Yang released a policy statement for crypto assets in a document that was published on his campaign website on Thursday, April 18, 2019.
Yang explains in his release how the government has failed to initiate and launch a national regulatory framework for digital assets while there are federal agencies claiming conflicting jurisdictions. According to Yang, there was an urgent need to define how digital assets should be treated and regulated to ensure that investors have all the relevant information. He stated:
“We should let investors, companies, and individuals know what the landscape and treatment will be moving forward to support innovation and development. The blockchain has vast potential.”
Yang admits that that cryptocurrency and digital asset market was developing faster than regulations with several states having conflicting regulations due to the absence of clear guidelines which was causing the United States to lag behind other countries in related investments. The statement further reads:
“It’s time for the federal government to create clear guidelines as to how cryptocurrencies/digital asset markets will be treated and regulated so that investment can proceed with all relevant information.”
Clarify Tax Implications
By giving a policy statement on cryptocurrency regulation, Yang becomes the first U.S. presidential candidate to focus their attention on the United States’ cryptocurrency policy.
The presidential hopeful has also expressed his frustration on the fact that U.S. lawmakers have taken little interest in this industry and anytime they do, they come up with conflicting regulations and policies, just like is happening across the ocean in Europe.
With several policymakers working towards regulations in the cryptocurrency area, Yang will be focusing a lot of attention towards tax, and especially the Token Taxonomy Act. He states on his website:
“As president, I will… promote legislation that provides clarity in the cryptocurrency/digital asset market space by: defining what a token is, and when it is a security (e.g., recognizing “utility tokens”)….Define which federal agencies have regulatory power over the crypto/digital assets space….Provide for consumer protections in the space….Clarify the tax implications of owning, selling, and trading digital assets….Promote the nationwide adoption of recognition of protections afforded by a series LLC….[and] Preempt state regulations when possible to create one national framework.”
As an entrepreneur, Yang contributed $120,000 to establish Venture for America (VFA), an accelerator aimed at building new startups in emerging cities and as part of his presidential campaign, Yang stands for implementing cryptocurrency and digital assets regulation in the country. Only time will tell whether Yang will be able to successfully move the subject of crypto regulation as a primary debate topic.