Shading Key Crowdfunding Money- Legal Tender Taxable Income Personal Information Task Force

Bill/Law Transmitting Bill/Law Bill/Law Storage Bill/Law Implementation Bill/Law

License Bill/Law

State Blockchain General Overview Smart Contract General Overview Trends/Comments

Law/ Status/ Law/ Status/
Focus of Focus of
Legislation Legislation
(* = mentions
“Blockchain”,
“Virtual
Currency, etc. in
Bill/Law)
Alabama HB215 – Passed - Businesses engaged in N/A N/A - License to act as a transmitter of
- Money- transmitting payment “payment instruments” which broadly
transmission instruments, including includes crypto
license cryptocurrencies, must obtain a - Company must provide security to
money-transmitter license and cover claims
proper security/insurance.
Alaska *HB180 – Pending - Businesses engaged in N/A N/A - Proposed Bill amends part of AK’s
- Money- transmitting payments, money transmission laws.
transmission including cryptocurrencies, - Definition: “Virtual Currency” (Sec.
license must obtain a license, security, 06.55.855)
compliance with AK’s money
transmission laws.
Arizona *HB2601 – Passed - Establishes several key N/A N/A - Proposed Bill amends part of AZ’s
- Crowd-funding standalone definitions general securities law.
exemption bill, - Regulates intrastate offerings - Definition: “Virtual Coin” - “digital
underwriters, (crowdfunding, virtual coin representation of value that can be
Security offerings) – treats virtual coins digitally traded”
Tokens/Utility as securities per 1933 Act - Definition: “Virtual Coin Offering”
Tokens definition.
*HB2602 – Passed - Adds definition of “Writing” *HB2417- Passed - Amended to include - HB2417 states Smart Contracts “may
- Adds additional to include blockchain tech., - Smart contracts provisions re: blockchain not be denied legal effect” or
language re: sets up HB2417 to allow smart are enforceable, technology, authorizing enforceability”
blockchain tech. contracts to include full legal blockchain tech. electronic signatures, - One of the first smart contract laws
enforceability. acknowledged. allowing smart contracts that passed in the country. Significant
to be used in commerce because it (1) explicitly identifies
smart contracts as instruments and (2)
gives full legal effect to smart
contracts based on e-signature
 precedence.

*HB2603 – Passed - No municipality can prohibit N/A N/A - Explicit allowance to operate nodes
- Allows Nodes to individual from running a node gives AZ individuals ability to operate
be operated in-state on blockchain (in residence). Nodes without concern of
interference.
*HB2216 – Passed - Prohibits any tracking or N/A N/A - This law mostly relates to controlling
- Criminalizes controlling use of firearms via privacy rights of gun-owners by
tracking of blockchain technology, likely preventing tracking of firearms on
weapons on due to privacy issues re: decentralized/public ledgers.
Blockchain Tech identity of gun
owners/locations.
*SB1019 – Vetoed - Allowed tax collection N/A N/A - This Bill was vetoed by the governor,
-Tax revenue department to study whether it would have allowed the tax
department payments for taxes could be department of AZ to study and collect
exploring payment made in Bitcoin, Litecoin, or taxes in the form of cryptocurrency to
of taxes by other currencies @ prevailing be valued at the time of receipt.
cryptocurrency rate. - Raised issues re: volatility of crypto
compared to U.S. dollar, ability of AZ
government to convert currencies
*SB1145 – - Will allow claims for net N/A N/A - This proposed Bill would allow for
Pending capital gains/losses included in the taxation of crypto-assets similar to
- Net capital gross income derived from the taxation of other securities such as
gain/loss for exchange of virtual currencies. stock, considered as capital
crypto assets gains/losses for the calculation of
gross income to be taxed.
California AB2658 – Pending - Proposal to establish working TBD - AB2658 is likely a - This is a preliminary working group to
- May establish group to determine use of precursor to Smart determine uses of blockchain
working group to blockchain technology for CA Contract legislation. The technology.
study uses of government and CA-based justification used for the - “Blockchain technology” likely
Blockchain businesses. working group is based includes smart contracts. The bill is
technology on existing laws allowing authorized under the notion that
the use and enforceability electronic signatures/documents are
of electronic records. considered legally enforceable.
SB838 – Pending - Will allow companies w/ N/A N/A - This Bill would authorize companies
- Records of securities not listed on to use blockchain technology to track
stockholders exchanges to store information and store their stockholders’
stored on of stockholders of record on information.
Blockchain blockchain technology. - This Bill relates to the security, open-
access, and verification abilities of
blockchain technology
Colorado SB277 – Pending - Will allow cryptocurrency N/A N/A - Different from other money-
 - Exempts virtual companies/exchanges to transmission law from states such as
currencies from operate without the need for a Alabama and Alaska. AL/AK require
money- money transmission license. a virtual currency transmission
transmission company to be licensed, whereas
license reqs. Colorado exempts these companies.
- The definition for “investment
contract” excludes tokens useable
within 60 days for goods/services
(does not require that such tokens
actually be used within that time
period).
SB086 – Passed - Orders the research of using N/A N/A - The order notes there are 6-8 million
- Research use of blockchain technology attacks per day on Colorado’s
blockchain solutions to protect sensitive systems.
technology to state records and individual - This proposal relates to data privacy,
secure state data. specifically the protection of private
records documents under control by the state.
Connecticut SB00513 N/A N/A
HB6800 – Passed - Requires companies involved N/A N/A - Gives power to commissioner to deny
- Defines virtual in money-transmission to be application for license if the
currency, require licensed, including companies commissioner believes there is
license for transmitting virtual currencies. potential for substantial financial risk.
money- - Places several specific
transmission restrictions on virtual-currency
related companies:
- 1. Commissioner may deny
application for license if
granting license may risk
undue risk on consumers
- 2. Commissioner may place
additional requirements
- 3. Surety bond must be in an
amount satisfactory to the
Commissioner.
HB7141 – Passed - Law requires licensees that N/A N/A - This law requires full security/bond of
- Requires engage in business of money all transmissions of virtual currency.
licensing transmission of virtual If the company is handling the transfer
- Licensee currency to hold virtual of 10 coins between parties, the
involved in currency of the same type and company must hold 10 of those same
transmission of amount owed/obligated to coins as security for the transaction.
virtual currency other parties (security/bond). This is a heavy burden for exchanges
must have proper wishing to act as transmitters of
bond virtual currency.
 - Fraud provisions in Sec. 21, Section
36(a)-607(b)
Delaware SB69 – Passed - Law allows private companies N/A N/A - DE is the state of incorporation for
- Allows storage of to store their shareholder countless companies due to its easy to
shareholder information on a blockchain. understand filing requirements and
information on This law does not apply to business-friendly laws. This law
blockchain public companies. further allows companies to store
information on a blockchain.
- This is a similar law to SB838,
currently pending in CA.
Florida HB1379 – Passed - Definition of virtual currency H1357 – Failed - This bill would have - This is a much broader definition than
- Defines “virtual is broad, “a medium of - Electronic allowed for the electronic most other states.
currency” broadly exchange” that is “not a coin or credentialing of credentialing and - This definition of virtual currency
currency of the United States vehicles tracking of vehicles by would apply to every type of
or any other country.” the DMV. private/public company, exchange,
- This Bill also had ICO, or other currency as this Law
language inserted that strictly defines non-virtual currencies
would have legitimized as those associated with official
smart contracts by government currencies.
allowing their
enforceability (electronic
documents aren’t non-
enforceable simply
because of the medium
they are hosted on).
Georgia HB811 – Passed - This Law requires the N/A N/A - Text of Law requires new
- Obligates department to enact rules and rules/regulations for:
Department of regulations regarding money - Promoting growth of virtual
Banking and transmission of virtual currency money-transmission
Finance to enact currency. businesses
rules/regulations - Protection of consumer rights
re: virtual - Regulate money-transmission
currency businesses to provide proper
disclosures and information to
consumers
- Prevent fraud.
SB464 – Pending - Proposed Bill would require N/A N/A - Similar Bills in other states have
- Require state the State Revenue failed, usually due to the requirement
revenue Commissioner to accept and of the state revenue collector to then
commissioner to collect cryptocurrencies from convert cryptocurrency collections
accept individuals for payment of immediately into USD. This would
cryptocurrency taxes and license fees. require the state to take on risk of
depreciating assets, act as a money-
 transmitter, etc.
Hawaii SB2853 – Pending - Bill will require formation of N/A N/A - Similar Bills in other states have
- Will require working group to determine failed and been passed. Working
working group use of blockchain technology groups are generally the state’s first
study on and best practice guidelines review of technology applications for
blockchain for state agencies, particularly use by state agencies. A working
technology use for use of storing/accessing group will typically use expert
by state agencies data. analyses to produce a report for state
legislators to use in their future
decision-making.
SB3082 – Pending - Defines virtual currency N/A N/A - This definition of “virtual currency”
- Defines virtual broadly but also narrows the excludes gaming tokens/tokens that
currency, requires definition from including cannot be used outside of the
license for game tokens and other closed- platform.
money- platform tokens. - This Bill is different from other state
transmission - Bill excludes virtual currency money-transmission Laws such as
money-transmission Connecticut and Alabama which
businesses from permissible requires money-transmission
investments provisions that businesses to have assets equal to
would require equal transmitted value of virtual
capitalization with the currencies to provide security for
aggregate amount of virtual each transactions.
currency transmitted through
the service.
Idaho N/A N/A N/A N/A
Illinois HB5553 – Failed - Failed Bill that would have N/A N/A - This Bill also included provisions for
- Blockchain codified use of blockchain smart contracts to be enforceable
Technology Act technology and smart through electronic signature authority.
contracts by in-state - Would have prohibited local
businesses. governments from taxing
cryptocurrencies.
-
HR0120 – Pending - The task force must study the N/A N/A - References the Illinois Blockchain
HJ25 - Passed use of blockchain technology Initiative, which promoted a
- Creates the in collaboration with industry collaborative regulatory exchange
Illinois leaders. with tech firms, software developers,
Legislative service providers, etc.
Blockchain &
Distributed
Ledger Task
Force
HB5335 – Pending - Would require the Department N/A N/A - Similar Bills in other states have
- Department of of Revenue to accept, collect, failed, usually due to the requirement
 Revenue must and convert cryptocurrencies of the state revenue collector to then
accept for income taxes from state convert cryptocurrency collections
cryptocurrency residents. immediately into USD.
for taxes - Similar Bill proposed in Georgia.
Indiana N/A N/A N/A N/A
Iowa N/A N/A N/A N/A
Kansas N/A N/A N/A N/A
Kentucky N/A N/A N/A N/A
Louisiana N/A N/A N/A N/A
Maine D950 – Died - This Bill would have required N/A N/A - This proposed Bill would have created
- Form working a working group to determine a working group to discuss the use of
group to study the use of blockchain blockchain technology in elections.
use of blockchain technology to assist current This is very different from other
technology for paper ballot methods in state working groups as this relates to
use in elections elections. election balloting, a very specific
focus for the working group.
Maryland HB1634 – Passed - This Law requires the N/A N/A - This Law is similar to other task force
- Research Fintech Commissioner of Financial research laws, however, it also
regulation and Regulation to study two includes internal studies regarding the
cryptocurrency, separate issues: Commissioner’s ability to regulate
exchanges, and - 1. Whether the Commissioner “Fintech firms”, a very broad term.
blockchain has proper authority delegated
technology to regulate Fintech firms
- 2. A general study of
cryptocurrency,
cryptocurrency exchange, and
other blockchain technologies.
Massachusetts N/A N/A N/A N/A
Michigan N/A N/A N/A N/A
Minnesota N/A N/A N/A N/A
Mississippi N/A N/A N/A N/A
Missouri N/A N/A N/A N/A
Montana N/A N/A N/A N/A
Nebraska LB691 – Pending - This Bill proposes to regulate LB695 – Pending - Defines smart contracts - Several other states have also passed
- Adopt the Virtual cryptocurrencies under the - Authorizes use broadly. Utilizes anti-money laundering laws.
Currency Money state’s existing anti-money of smart precedent authorizations However, surprisingly a majority of
Laundering Act laundering laws. contracts and from electronic signatures states have not, even after they have
- Does not recognize defines. laws, etc. authorized the use of
cryptocurrency as a legal cryptocurrencies.
tender, but this represents a
first step towards recognizing
economic value of
 cryptocurrencies.
LB694 – Pending - This Bill would prevent N/A N/A - This Bill is similar to AZ Law
- Prohibits local cities/towns from taxing or HB2603, however, LB694 goes
governments regulating blockchain further to prevent any city/town from
from technology-related - requiring licenses or certificates.
regulating/taxing companies. -
blockchain - This Bill also blocks
technology cities/towns from requiring
blockchain businesses to
obtain any type of special
license or certificate to
operate.
LB987 – Pending - This bill would adopt the N/A N/A - This Bill is significant because it
- Allows Uniform Regulation of specifically carves-out money-
cryptocurrency Virtual-Currency Businesses transmission services from regulation.
businesses to Act. Whereas other states require some
operate legally. - Regulates cryptocurrency type of license or approval for
businesses in-state or with cryptocurrency transmission
connection to state residents. businesses, Nebraska exempts those
- Does not apply to money- businesses.
transmission businesses.
Nevada SB398 – Passed - Blockchain technology is N/A N/A - This Law is similar to Nebraska
- Recognizes considered an electronic LB691, prohibiting local regulations,
blockchain signature under the Uniform taxes, or license requirements on
technology and Electronic Transactions Act blockchain technology companies.
electronic - Prohibits city/local
records, passes municipalities from
certain regulating/taxing blockchain
regulations, companies.
prohibits local
regulation/tax
New HB436 – Passed - This Law exempts virtual N/A N/A - This Law is similar to Nebraska and
Hampshire - Exempts money- currency/blockchain-related Nevada and opposite from Alabama,
transmitting companies from licensing Alaska, Connecticut, and other states
businesses from requirements for money- requiring special licenses for money-
regulation transmission. transmission of virtual currencies.
New Jersey A3833 – Passed - This Law regulates fiduciary N/A N/A - One of the few state Laws in effect
- Fiduciary use of duties related to digital assets, that discusses digital currency as an
blockchain including provisions for asset that is owned and can be passed
technology custodianship of digital assets. on from a user to another person
through a custodian.
A1906 – Pending - Will create the Digital N/A N/A - Proposed Bill would require
 - Promotes Currency Jobs Creation Act
innovation in - Prevents municipalities from
digital currency taxing or regulating
industry, cryptocurrency companies
cryptocurrency - Cryptocurrency companies -
business must must register with the state
register with the before doing businesses.
state - Also requires cyber-security
protections.
New Mexico HB250 – Passed - Requires cryptocurrency
- Money- money-transmission business
transmission to obtain a license.
license - Must have $300,000 or 1% of
annual transmissions in
security.
- Aggregate liability does not
exceed principal sum of bond.
New York AB8792 – Pending - Proposed Bill would require
- Establish study of using blockchain - Will recognize
working group to technology to protect voting
study use of records, voter information,
blockchain to and election results from
protect voting vulnerabilities.
records
AB8793 – Pending - Task force will study use of
- Establish task blockchain technology for use
force to study use in state recording keeping,
of blockchain in information storage, and other
state agencies administrative needs.
AB8783 – Pending - Establishes New York state
- Establish task Digital Currency Task Force.
force to study - Study effects of
potential effects cryptocurrency on the overall
of digital market as well as the effects
currency on on tax collection, etc.
financial markets
AB9685 – Pending - Task force will determine
- Establish task steps necessary for state to
force to study produce and release a
effects of state- cryptocurrency.
issued - The task force will determine
cryptocurrencies tax consequences, regulations
on financial by the SEC, and other
businesses to have cyber-security
program to protect system and critical
data, including user confidential
information.
N/A N/A - Comparable to other states such as
Alabama or Connecticut, New Mexico
requires a lower amount of security to
cover complaints.
AB8780 – Pending - - Dual-highlighted to reflect that
AB8792 is a working task group
blockchain and designed to protect personal
smart contract as information.
digital records
and enforceable.
N/A N/A - Dual-highlighted to reflect that
AB793 is a working task group
designed to protect personal
information.
N/A N/A - Bill would create a task force to study
overall economic effects of
cryptocurrencies before legislature
passes further laws regulating the
cryptocurrency industry.
N/A N/A - This is an interesting Bill because it is
the only legislative discussion of a
state-issued cryptocurrency.
 markets regulations.
North HB289 – Passed - Money transmission N/A N/A - This Law is different from other
Carolina - Money application and license needed money-transmission license laws
transmission to transmit money. because it requires the business to
license - Requires minimum net worth have a minimum net worth to satisfy
of money-transmission the licensing requirements.
business of $250,000. - The maximum surety bond, $250,000,
- Minimum surety bond is is much less than other states such as
$150,000, maximum is Alabama and Connecticut.
$250,000 (for $10 m in
transmissions).
North Dakota SB2100 – Failed - Unclear what this task force N/A N/A - Defines virtual currency, excludes
- Task force to would have stored value tokens for
study virtual considered/studied during its goods/services.
currency tenure.
Ohio N/A N/A SB300
Oklahoma N/A N/A N/A N/A
Oregon SB277 – Passed - Amends current OR law to N/A N/A - This Law only updates existing
- Money- include money-transmission Oregon money-transmission laws.
transmission licensing requirements for all This Law does not create specific
license businesses transmitting provisions for cryptocurrencies as
money, including virtual other states have done.
currency.
Pennsylvania HB850 – Passed - Amends currency PA law to N/A N/A - This is a broad Law that includes all
- Money- include money-transmission “money” transmitted, including any
transmission licensing requirements for all form of virtual currency.
license businesses transmitting - Other states have exempted utility
money, including virtual tokens and other non-financial use
currency. tokens, see Hawaii.
Rhode Island N/A N/A N/A N/A
South N/A N/A N/A N/A
Carolina
South Dakota N/A N/A N/A N/A
Tennessee N/A N/A HB1507 – Passed - Smart contracts may exist - One of the few passed smart contract-
- Recognizes legal in commerce, shall not be related Laws in the country.
authority to use denied legal effect or - Also protects ownership rights of
distributed enforceability. certain information secured by
ledgers/smart - Signature secured blockchain technology, a key
contracts in through blockchain component of digital ownership over
conducting technology is considered information shared on publicly-
electronic to be enforceable. accessible distributed ledgers.
transactions.
Texas N/A N/A N/A N/A
Utah SB175 – Passed - Amends the Uniform N/A N/A - While this law does not fully
- Considers Unclaimed Property Act to recognize cryptocurrencies as a legal
cryptocurrency as include cryptocurrency as tender like Arizona, custodianship of
assets subject to assets subject to the Law. “assets” is a first step towards
unclaimed recognizing cryptocurrencies as legal
property laws tender to pay debts.
Vermont H.868 – Passed - Gives legal enforceability and N/A N/A
- Recognizes verification to business
business records records stored on secured
can be stored on blockchain technology.
blockchain
technology
S.135 – Passed - Forms a working group to N/A N/A - This working group has a broad
- Establish group to discuss new era of innovation mandate to discuss the positive
study Vermont’s in financial technology, aspects of blockchain technology,
leadership in including opportunities for especially in the financial industry.
financial employment, tax revenues,
technology industry and other benefits.
H.182 – Passed - Requires money-transmission N/A N/A - This Law does not require any
- Money- license for virtual currencies. security/surety bond for money-
transmission - Transmitter must offer refund transmitters handling virtual
license to customers under certain currencies.
conditions.
S.269 – Passed - Review regulatory agencies N/A N/A - First Law to create new corporate
- Creates studies that could adopt regulatory forms specifically for blockchain-
for evaluating technology. related companies: Information
blockchain - Comprehensive review of Protection Companies and
potential, creates Vermont’s statutory/ Blockchain-Based Limited Liability
2 new types of regulatory consumer Companies.
companies protection framework in light
of evolving risks.

Virginia HB1608 – Passed - Creates Uniform Fiduciary N/A N/A - Similar to other digital asset fiduciary
- Allows fiduciary Access to Digital Assets Act laws, this Law represents a first-step
to manage digital - Allows fiduciaries to manage to recognize virtual currencies as legal
property digital property (defined tenders that require fiduciary concerns
broadly to include all digital and regulatory recognition.
information as well).
HJR153 – Pending - Work group will discuss uses N/A N/A - Dual-highlighted to reflect that
- Establish work of blockchain technology to HJR153 is a working task group
group to study secure personal data such as designed to protect personal
use of blockchain state record keeping and information.
 technology in voting records. - This work group will cover a wide
state - Will also discuss economic range of topics ranging from personal
recordkeeping, value of pursuing blockchain data storage by the state to feasibility
information technology in other studies regarding specific industries
storage, etc. fields/industries in the state. within the state.

Washington SB5031- Passed - Amends Uniform Money N/A N/A - The maximum surety bond is the
- Money- Services Act. lowest ($50,000) of any other state
transmission - Surety bond for Law.
license cryptocurrency licenses must
be in amount based on the
previous year’s exchange
dollar volume, minimum
$10,000/ maximum $50,000.
HB1045 – Pending - Amends Uniform Money N/A N/A - This is the first proposed state law to
- Licensing Services Act. specifically target cryptocurrency
requirements of exchanges for licensing, not just
cryptocurrency money-transmission
exchanges services/requirements.
West Virginia HB2585 – Passed - Money-laundering provisions. N/A N/A - This Law specifically creates two new
- Defines - Defines cryptocurrencies felonies for money-laundering through
cryptocurrencies broadly, creates two new cryptocurrency assets.
as monetary felonies for laundering
instrument criminal transactions through
cryptocurrencies.
Wisconsin N/A N/A N/A N/A
Wyoming HB70 – Pending - The purpose of the exempted N/A N/A - Similar to other state laws, allows for
- Exempts utility token must be for the exemption of certain utility
tokens from “consumptive purposes” and tokens, used for exchange of
securities laws must be used for goods/services, from securities
goods/services. regulations.
- Cannot be sold as a financial
investment.
HB19 – Pending - Exempts virtual currencies N/A N/A - Similar Bill to other state laws such as
- Exemption from from money-transmission New Hampshire. This Bill would
money- licensing, requirements, and exempt cryptocurrencies from broad
transmission surety bond requirements. requirements of money-transmission
license laws laws.
HB101 – Pending - Allows for the storage of N/A N/A - Similar to other blockchain
- Allows for personal data, such as the technology solution laws that allow
storage of name of shareholders, on businesses to use blockchain
company records blockchain technology technology to securely store personal
on blockchain resources by companies. information and other business
 records.
HB126 – Pending - Would create a new class of N/A N/A - Only one other state, Vermont, has
- Would create “series LLCs” for created new forms of corporate
series LLCs for decentralized protocol structure for blockchain technology
blockchain (blockchain) businesses. companies. Wyoming’s “series LLCs”
companies - LLC would have a series of is a much broader corporate structure
members, managers, etc. than Vermont’s 2 options for new
businesses.
SB111 – Passed N/A N/A - This Law is significant because it
- Exempts certain exempts certain cryptocurrency assets
cryptocurrency from state taxation, rather than
assets from establishing a separate tax.
taxation