Chamber statement on Clarity for Digital Tokens Act of 2021 introduced by Ranking Member Patrick McHenry

October 5, 2021

The Chamber of Digital Commerce applauds Ranking Member Patrick McHenry for his leadership in introducing today’s legislative proposal that provides a safe harbor framework for blockchain innovators creating and issuing digital tokens as they develop their networks toward a decentralized or functional technology platform.  This legislation has the potential to provide a much needed clear path forward for those creating new innovations and solutions leveraging digital tokens.

We believe that legislation of this type is particularly necessary in light of the fact that, despite widespread industry calls for action, the SEC has not yet itself promulgated rules or issued binding interpretive guidance setting out the clear legal framework needed for token issuers and market participants to determine whether a token is a digital asset security or a non-security digital asset.   To address this issue, in 2020 and 2021, SEC Commissioner Peirce published two versions of a Token Safe Harbor that creates a three year sandbox for token issuers under the federal securities laws, a safe harbor framework that is yet to be formally proposed by the SEC for public comment or adoption but is reflected in today’s legislation.

The Chamber also encourages further legislative efforts to provide clear legal frameworks across all aspects of this innovative space.