A new bill proposes to exempt cryptocurrency-related businesses from being classified as money transmitters and attempts to clarify terms related to blockchain. Utah Senate Bill 213 also advocates for the creation of a legislative task force for blockchain technology.
SB-213 defines blockchain technology as follows.
“An electronic method of storing data that is maintained by consensus of multiple unaffiliated parties, distributed across multiple locations and mathematically verified.”
The bill says money transmission does not include a blockchain token. According to SB-213, a blockchain token is an electronic record that is recorded on a blockchain and capable of being traded between individuals without an intermediary.
“‘Money transmission’ means the sale or issuance of a payment instrument or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including payment instrument, wire, facsimile, or electronic transfer.”
If passed into law, the bill would allow for the creation of a 12-member task force which will explore uses of the technology. The “Blockchain Pilot Project Evaluation Task Force” will prepare a report with proposed legislation and recommendations before November 30th. It is expected to recommend a pilot project for blockchain technology in Utah.
According to SB-213, members of the task force will be tapped from private businesses and the blockchain community.
In the absence of a clear regulatory framework at the federal level, state lawmakers are moving to introduce meaningful policies that govern cryptocurrencies and blockchain-based businesses. California, Wyoming, New Hampshire and Ohio are among a growing list of states exploring use cases for blockchain technology and cryptocurrencies, as they draft legislation to regulate new applications.