In line with a new bill H5596, recently ‘introduced‘ within the legislature, U.S. stated of Rhode Island recently passed a new bill that would exclude “blockchain tokens” from state securities laws.
The new bill proposes a series of amendments to the Rhode Island Securities Act, underneath which “a developer or seller of an associated open ‘blockchain‘ token shall not be deemed the issuer of a security,” ought to some conditions to be met.
The token should be used for a “consumptive purpose” that’s solely exchangeable for “the receipt of, goods, services or content, together with rights of access to products, services or content.”
Tokens can not be marketed as an investment, and if they’re not usable for a “consumptive purpose” once sold, purchasers should be prevented from reselling them. H5595 conjointly excludes entities that facilitate the exchange of a token from principal broker seller status should they file a notification with the Secretary of State. The bill additionally concludes by explaining a “blockchain token” as:
“(2) Recorded via in a digital ledger or database that is written record, consensus-based, decentralized and mathematically verified in nature, particularly linking to the supply of units and their distribution; and (3) Capable of being listed or transferred between persons without any intermediary or custodian of value.”
In line with the legislation information portal Legiscan, the bill was forwarded to the House Committee following its introduction. No info relating to more votes was forthcoming.
A similar law was recently passed within the Colorado General Assembly. The Bill SB023 or the “Colorado Digital Token Act” would provide restricted additional freedoms for ‘cryptocurrencies‘ and traders. Specifically, the bill “provides restricted exemptions from the securities registration and securities broker dealer and sales employee licensing needs for persons dealing in digital tokens.” Since at the reporting time, the law is awaiting the ‘signature‘ of the governor to become ‘law‘.
Following the federal midterm elections held earlier in Nov. last year, several states gained cryptocurrency and blockchain-friendly representatives and officials. In Rhode Island, the sitting Democratic governor named ‘Gina Raimondo’ — who is listed high in blockchain-friendliness — defended her post against a Republican challenger.