The New Jersey General Assembly might think about a bill that would determine when a digital asset or “virtual currency’ is a security under state law.
All virtual currencies issued and sold to institutional investors would be considered securities in the U.S. state of New Jersey under the bill introduced by Democratic Assemblymember Herb Conaway, Jr. on Nov. 29. According to the short text of the bill, the legislation would supplement the New Jersey Uniform Securities Law, which currently makes no mention of virtual or digital currency or cryptocurrency.
The bill pertains only to institutional investors, which are defined as “a company or organization that invests money on behalf of other people.” It additionally specifies that stablecoins may very well be decided to be digital currencies by the state’s Bureau of Securities.
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The bill would solely apply to transactions ruled by New Jersey legislation and would not impression the federal Securities and Exchange Commission.
Two different payments are pending in New Jersey that additionally have an effect on crypto. The Virtual Currency and Blockchain Regulation Act would present regulation for shopper digital property and decentralized autonomous organizations. It just lately handed each homes of the New Jersey legislature and is presently awaiting motion by the governor.
#NewJersey introduces A5747, which would outline all #virtualcurrency sold to #institutitonal investors as #securities. h/t to @kkirkbos for recognizing this one! /1 https://t.co/f7vnwoentn
— Drew Hinkes (@propelforward) December 5, 2023
In addition, the Digital Asset and Blockchain Technology Act would require the state Department of Treasury to evaluate and approve a digital fee platform for state-approved companies “that do not have access to traditional financial services and are forced to operate in cash-only or cash-heavy environments.” The platform would use a digital forex pegged to the U.S. greenback and would facilitate audits, compliance and native tax funds.
Assemblymember Conaway’s workplace declined to touch upon his bill when approached by Cointelegraph.
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