here's the full text of the #Token Taxonomy Act, which would exclude #crypto tokens from the #SEC definition of #Securities: scribd.com/document/39609…

looks like it would attempt to qualify trades of crypto for 1031 like-kind exchange:

$600 de minimis gain carve out, collapsing multi-step trades into one, no gains for crypto to crypto trading

Would be retroactive to 1/1/17.

Would attempt to address statutory requirement for "satisfactory control location: aka custody as "through public key cryptography and following commercially reasonable cybersecurity practices"

Interesting aspect of def. of digital token: "is created...pursuant to rules for the digital unit’s creation and supply that cannot be altered by a single person or group of persons under common control" 1/2

Does this mean a system with an organized & paid dev group/ foundation funding development that that can change consensus rules would not qualify?

Also includes in def. of digital token: "after consensus is reached, cannot be materially altered by a single person or group of persons under common control" Does this mean it must be 51% attack resistant? Does this preclude a community consensus fork to avoid a theft?

proposes new exemption from registration as a security that provides safe harbor if an offeror of a digital token is notified by the SEC that it is a security, w/in 90 days must post public notice of such notification & takes reasonable efforts to cease all sales & return all 1/2

proceeds from any sales of such digital unit, excluding funds reasonably spent on the development of technology associated with the digital unit. So. Many. Questions. here 2/3

Does this imply the SEC will call & notify issuers that they issued securities? does this short circuit the SEC's ability to bring actions? Is this post- adjudication of if the instrument is a security at trial? How does anyone determine what was spent on "tech development"?