Warren Earl Davidson is an American politician from the state of Ohio trying to make the United States of America more attractive to crypto startups.
When Davidson arrived in Washington D.C., he noticed that Initial Coin Offering is one of the problems with no solution. He has joined forces with Darren Michael Soto who is an American attorney and politician from Orlando, Florida. The main reason to join the American attorney is to release a bipartisan bill which is known as the Token Taxonomy Act in December 2018. The new bill provides security legal concerns and favorable tax reforms to digital tokens.
The main purpose of the bill is to define the criteria for Initial Coin Offering (ICO) and to exempt some of the criteria from the defamed designation. There are a few exempted criteria viz., the token is not a representation of a financial interest in a company, including ownership or debt interest or revenue share; the token’s supply can’t be controlled by a single person or group of people; once finalized, transactions can’t be altered by a single person or group of people; and the blockchain platform the token runs on has already launched.
Davidson aims to amend the Securities and Exchange Act of 1934 and the Securities Act of 1933 along with the release of the bill in order to define security and get the regulatory needs for the cryptocurrency market.
“If you want to raise money to sell oranges, and you don’t own any oranges or an orange grove, that’s security. But if now the oranges have grown and are in barrels, the oranges are no longer securities,” said Davidson. On a clear view, if the bill goes on the floor, then the crypto startups will have to adopt traditional funding models such as venture investment or angel in order to support pre-launching operations of the product, according to a report by Forbes.
Vitalik Buterin Donated 300k USD To Crypto Startups
Vitalik Buterin, the co-founder of Ethereum and Russian-Canadian programmer, has donated 300k USD to those crypto startups who worked for Ethereum network, according to a report by Ethereum World News. The idea of the donation came after a Twitter debate. Where the CEO of SpankChain Ameen Soleimani who has drawn special attention towards the scalability and speed of Ethereum Blockchain.
Buterin tweeted that the Ethereum development team was approximately close to solving the problem related to scalability with Ethereum 2.0, and Soleimani suggested that faster advances would be possible if there were more helping hands outside the team towards the blockchain improvement. The founder at MachinePowered Preston Van Loon responded to Soleimani’s tweet, stating that being a small startup they are not able to devote towards the Blockchain development. Buterin saw the tweet of Preston and sent 1000 ETH.
Another request from one of the developers at Lighthouse Paul Hauner who tweeted that the team could “certainly turn 1k ETH into more developers”. Buterin saw the tweet and sent 1000 ETH. Mikerah, a Twitter user, tweeted that if he receives a similar donation, then he will leave his studies in order to give all his time towards the Ethereum 2.0 development with ChainSafe Systems. Buterin accepted and made one more 1000 ETH donation.
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