New Jersey Contemplates Bill to Classify Virtual Currencies as Securities
Summary:
A New Jersey bill, introduced by Democrat Assembly member Herb Conaway Jr., proposes to classify all virtual currencies sold to institutional investors as securities. The amendment to the New Jersey Uniform Securities Law also allows the state's Bureau of Securities to categorize stablecoins as virtual currencies. If passed, the rule would only apply to transactions governed by New Jersey law, and not affect federal Securities and Exchange Commission rules. This is one of three bills amid considerations around crypto regulation in the Garden State.
The General Assembly in New Jersey might weigh in on a proposed bill defining when a digital asset or 'virtual currency' is considered a security by state law. If passed, the legislation, introduced by Democrat Assembly member Herb Conaway Jr. on Nov. 29, will classify all virtual currencies released and sold to institutional investors as securities within the Garden State. Currently, the New Jersey Uniform Securities Law sidesteps any reference to digital, virtual, or cryptocurrency, which this bill looks to amend. The law primarily applies to institutional investors, entities that manage funds for others. Furthermore, it includes a provision that the state's Bureau of Securities can declare stablecoins as virtual currencies.
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The proposed legislation pertains uniquely to transactions governed by New Jersey law, leaving the federal Securities and Exchange Commission unaffected. Assemblyman Herb Conaway’s bill, which categorizes virtual currencies, is one of two additional bills pending in the state related to crypto. The Virtual Currency and Blockchain Regulation Act, currently awaiting the governor's approval, aims to regulate digital assets for consumers and decentralized autonomous organizations. Passed by both legislative houses, it's poised to streamline consumer digital assets and decentralized autonomous organizations.
#Institutional investors buying #virtualcurrency will legally see it as #securities if A5747 gets passed in #NewJersey. Thanks to @kkirkbos for this alert. /1 https://t.co/f7vnwoentn, tweets Drew Hinkes (@propelforward) on December 5, 2023.
Moreover, the Digital Asset and Blockchain Technology Act mandates that the State Department of Treasury evaluates and approves a digital payments platform for state-sanctioned businesses, particularly those devoid of access to mainstream financial services and heavily dependent on cash transactions. The proposed platform, operating with a virtual currency tied to the U.S. dollar, will simplify audits, regulatory compliance, and local tax payments. When Cointelegraph contacted Assemblyman Conaway's office for comments on the bill, there was no response.
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Published At
12/5/2023 10:20:00 PM
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