Daily Byte: Wednesday, December 5, 2018

Congressman takes on ICOs, Switzerland rejects crypto regulatory framework, and traditional financial firms back crypto exchange.

  • Congressman Proposes Legislation to Regulate ICOs and Classify Crypto as New Asset Class

    Cleveland.com is reporting that a United States representative has proposed federal legislation that would create a regulatory framework for crypto-assets and ICOs. The bill, proposed by Rep. Warren Davidson (R-OH), has bipartisan support and would classify crypto tokens as an “asset class” that cannot be classified as securities. This asset class would allow the federal government to introduce regulatory legislation for ICOs in a more concise manner than what is possible now.

    The bill has yet to be introduced in Congress. Davidson announced his plan at the Blockland Solutions Conference in Cleveland. It is uncertain when the bill will be presented. This follows a bill introduced in October to create a working group to define blockchain technology.

    Swiss Reject Crypto Framework in Favor of Tweaking Current Laws

    Finews.ch is reporting that the Swiss government has rejected the notion of creating a crypto framework for regulations in favor of adjusting existing securities laws.

    At the blockchain conference Infrachain in Bern, Swiss Minister of Finance Ueli Maurer stated that the plan is for the Swiss government to propose changes to six laws next year, including the civil code and the bankruptcy law.

    Maurer is seemingly concerned that Switzerland is behind rivals UK and Liechtenstein in FinTech development. Liechtenstein published in August a draft of its “Blockchain Act” – a transaction systems law based on trustworthy technologies – which is currently being examined by an expert commission and is expected to be adopted in 2019.

    Fidelity, Nasdaq Ventures Invest in Crypto Exchange

    Fidelity Investments and Nasdaq Ventures led a funding class that saw crypto exchange ErisX receive $27.5 million in seed money, Reuters is reporting. ErisX is claiming that it will allow investors to trade bitcoin, Litecoin, and Ether on spot and futures markets starting next year, should the exchange win regulatory approval.

    It is unclear how much the two firms gave to ErisX. Fidelity did not immediately respond to requests for comments and Nasdaq passed on disclosing a specific dollar amount. The monies will be used for staff and to “build out our infrastructure and secure the appropriate steps are taken to develop a regulated market for digital assets,” ErisX CEO Thomas Chippas said in a statement shared with Reuters.

    ErisX closed its first round of funding in October with funding from TD Ameritrade, Valor Equity Partners, and Cboe Global Markets.

    Be fast, be clever, be wise. Most importantly, be here tomorrow for your Daily Byte.

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