U.S. Representative Warren Davidson reintroduced the Token Taxonomy Act, a bill designed to provide regulatory clarity to blockchain-based businesses and digital currency users, according to a press release sent to Bitcoin Magazine.

If passed, the act would amend the Securities Act and Securities Exchange Act to exclude “digital tokens from the definition of a security” and direct the U.S. Securities and Exchange Commission to make regulatory changes in how it views “digital units secured through public key cryptography,” per the bill text. It would also adjust taxation rules and institute exemptions for digital currency exchanges and gains.

The bill is co-sponsored by Representatives Ted Budd (R-NC), Darren Soto (D-FL), Scott Perry (R-PA) and Josh Gottheimier (D-NJ).

“The window is closing,” Davidson stated, according to 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.”

Advocates of the bill argue that the current patchwork of laws and regulations around blockchain-based assets creates confusion and even hostility toward the related businesses operating in the U.S.

The release noted the defiant growth of the cryptocurrency market amid the COVID-19 pandemic and the indecisiveness of the Biden administration regarding the regulation of private digital wallets, following the introduction of potential regulation under the Trump administration.

Soto also went further to explain his collaboration with Rep. Davidson on adding important definitions and jurisdiction, to help create certainty for a strong digital asset market in the United States.

Soto explained that support across the aisle for the bill is an indicator that U.S. regulators are seeking to create a more friendly environment for the development of cryptocurrencies and blockchain-based projects.

“The strong support for this bipartisan legislation from U.S. businesses and stakeholders is a clear indication that our friendly, light-regulatory proposal will propel the United States to be at the forefront of this industry,” Soto said, per the release.