Litecoin (LTC) price is trading nearly 40% in March as buyers seek to set a fresh 3-year high.
Fundamental analysis: US Representative reintroduces Token Taxonomy Act for a third time
Regulation is still one of the hottest topics in the cryptocurrency ecosystem. U.S. Representative Warren Davidson reintroduced the Token Taxonomy Act for the third time in three years in a bid to offer regulatory clarity to blockchain-based companies and users.
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Davidson’s bill was first introduced in 2018 and focuses on exempting specific crypto and digital assets from federal securities laws, according to the press release.
In particular, the legislation seeks to amend the Securities Act of 1933 and the Securities Exchange Act of 1940 and if passed, U.S. regulators would gain much more clarity on in what manner to implement new securities laws that are related to crypto assets.
“Currently, a patchwork of laws and regulations creates confusion and even hostility to various blockchain businesses,” the press release says.
This is the third time Davidson has reintroduced the act, which was co-sponsored by Representatives Ted Budd (R-N.C.), Darren Soto (D-Fla.), Scott Perry (R-Penn.), and Josh Gottheimer (D-N.J.). The bill was previously introduced in 2019 but was not successful.
“The window is closing,” Davidson emphasized in the release.
“If we don’t act quickly, the United States will be left behind. Other countries have found ways to regulate blockchain projects and, in doing so, have made themselves more attractive to entrepreneurs,” he added.
The U.S. will be able to make sure blockchain-related innovations occur locally and benefit its citizens only in an “appropriate regulatory environment”.
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Technical analysis: Buyers targeting new highs
Litecoin is currently up about 38% in March as the buyers continue to extend gains. The digital asset has gained around 500% since November, resulting in a new three-year high of $247.00 set in February.
Traders looking to buy LTC are forced to wait for a pullback to take place. In this case, a correction to $185 is likely to result in a start of the new buying wave. On the upside, the price action is targeting $267, which is a 61.8% Fibonacci retracement line of the big move lower.
Summary
U.S. Representative Warren Davidson reintroduced the Token Taxonomy Act for the third time since 2018 to provide regulatory clarity to crypto firms and users. In the meantime, LTC has continued to march higher.