US Rep. Warren Davidson (R) is leading a new effort to update US laws on cryptocurrencies. He says that the existing laws have not kept up with the speedy developments in the blockchain industry.

The US government has yet to pass a definitive law on the cryptocurrency industry, leading many to believe the country could fall behind. Although the Congressional Blockchain Caucus has been pushing for legislative clarity, so far nothing has passed.

Initially, representatives and regulators assumed cryptocurrencies to be just a “fad” which facilitated illegal markets. However, it has since become clear that Bitcoin and other cryptocurrencies are here to stay.

Legislation Desperately Needed

US Rep. Warren Davidson is looking to update existing laws with a new push. According to Davidson, the US is losing out on capital and innovation from this quickly-emerging market. Currently, Davidson is a member of the House Financial Services Committee.

As he told reporters, the capital is “going offshore to places where they pass laws that provide certainty that if I put my capital here, I know the framework under which I’m going to be operating.” Despite the US having the largest markets, we are “driving that capital out of our country” with these archaic laws.

Together with Rep. Darren Soto, Davidson co-authored a bill called the Token Taxonomy Act which would exempt cryptocurrencies and other digital assets from federal securities law. Although still to be voted on, it will take some time. That’s especially troubling considering that many blockchain-related businesses are already leaving to Singapore, Switzerland, and Malta––all countries with expansive laws on cryptocurrencies already on-the-books.

“Good Guys Need to Be Protected”

Having such a law like the Token Taxonomy Act would ensure that the cryptocurrency space is no longer like the ‘Wild West,’ explains Davidson. The good news is that the bill currently boasts bi-partisan support. “To me, it’s like the early days of the Internet,” Davidson believes.

The bottom line is that Davidson wants to “let the good guys know they’re protected,” especially consumers. Blockchain-related industries have to be encouraged to stay in the US. Although the Token Taxonomy Act is only a start, it’s a much-needed one. Davidson hopes he can push to get it passed sometime this year.

Do you agree that the US is in serious jeopardy of falling behind in the cryptocurrency industry? Let us know your thoughts below.