New legislation regarding Initial Coin Offering (ICO) will be submitted to Capitol Hill. This presentation will be made by leaders in the cryptocurrency sector who were invited by Republican Representative Warren Davidson on September 25.
Who’s Attending?
The invitees will include Andreessen Horowitz, Union Square Ventures, Intercontinental Exchange, Kraken, Nasdaq, CME Group, Circle, Coin Center, Ripple, Harbor, CoinList, among others.
32 leaders in the cryptocurrency field in total are expected to attend.
What’s on the Table?
The purpose of the meeting is to hold discussions on new regulations made on ICOs after a number of recent decisions made by the Securities and Exchange Commission and rampant ICO exit scams which has lately plagued the cryptosphere. A bill is to be presented to Congress later this year and so, Davidson needs all the expertise he can get. There have been talks already been held by Davidson’s office and the SEC but nothing has materialized ye.
Davidson said,
“I intend to lead legislation for initial coin offerings to clarify the role of regulators, protect consumers, address national security concerns, and facilitate a pro-growth environment for businesses to raise capital.”
What This Means for Crypto
The inclusion of cryptocurrency leaders in this legislative process is very telling. Details of the proposed bill haven’t been made public but there is speculation that there will be a strong focus on ICOs now and in the future, and for good reason. In the last few years, there has been a significant increase in the number ICOs entering the market. On the other hand, the number of IPOs has reduced.
Needless to say, ICOs seem to be taking preference. A huge issue that plagues ICOs is that there is little structure surrounding them and as such, not made laid down rules.
This legislation could be a step in the right direction.
Looking into the Future
There is already an agreement on the need for well-defined rules around ICOs.
The meeting with Davidson’s office signals a willingness of Capitol Hill to include the cryptocurrency sector in the setting up of these rules and structures. Davidson has quite a bit of sway on Capitol Hill as a member of a committee that oversees the SEC.
The meetings in September, as well as the upcoming legislation, could signal a new era of proper structure around ICOs and even more institutional recognition for cryptocurrency.
Till then, only time will tell.
