The Republican Member, Warren Davidson, and Democratic Member Darren Soto submitted to the House of Representatives, the classification of "token" by trying to modify the Securities Act of 1933 and the Securities Exchange Act of 1934, digital assets will be excluded from the definition of securities, as long as the digital currency become a fully functional network, it should be classified as the category of the United States securities laws do not apply.
Davidson planned to introduce legislation in early December to create "asset classes" for digital currencies and digital assets, and to sidestep strict U.S. securities laws by treating ICO as a product rather than a security. He also argues that in the early days of the Internet, congress passed legislation that provided clarity and prevented excessive government regulation of markets. In a similar way, the token classification act aims to prevent the SEC from over-identifying ICO in order to ensure America's leading position in this area of innovation.
In the United States, the definition of securities is very broad, mainly include all kinds of negotiable instruments, stocks, government bond, bond, unsecured bonds, interest certificate or participate in some kind of proof or profit distribution agreement, trust guarantee certificate, planning economic organization certificate, transferable equity, investment, contract, letter of credit, certificate of securities has voting rights, oil, gas or other mineral undistributed part of the rights and interests; Any short-selling option, short selling option, short selling option, option or privilege relating to foreign currency traded on the national stock exchange; Or, in general, any interest or instrument deemed to be a "security", or evidence of any interest in the purchase of any of the foregoing, such as provisional or intermediary receipts, warranties, warranties, etc.
Experts have long debated whether digital currencies are securities or not, even within the SEC. In the case decided in March 2018, U.S. district court judge Jack Weinstein had ruled that digital currencies such as bitcoin were commodities and should be regulated by the commodity futures trading commission. And other digital currency such as ETH or EOS also want to not be defined as the security. Member of UK Congress have proposed "Token Taxonomy Act of 2018" to exclude digital currency from the SEC's securities definition, that’s good news for digital market.