The New Jersey bill makes the sale of crypto securities to institutional investors
The New Jersey General Assembly may consider a bill that would limit the waiting period for digital assets or “virtual currencies” under state law.
On November 29 by Democratic Assemblyman Herb Conaway, Jr. According to the proposed bill, all virtual currencies issued and sold to institutional investors in the state of New Jersey would be considered securities. According to the bill's brief text, the law would supplement New Jersey's Uniform Securities Act, which currently makes no mention of virtual or digital currency or cryptocurrencies.
The bill only applies to institutional investors, which are defined as “a company or organization that invests money on behalf of other people.” It also states that stablecoins can be defined as virtual currencies by the state Securities Bureau.
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The bill applies only to transactions governed by New Jersey law and does not affect the federal Securities and Exchange Commission.
Two other bills are pending in New Jersey that will affect crypto. The Virtual Currency and Blockchain Regulation Act provides regulation for consumer digital assets and decentralized autonomous organizations. It recently passed both houses of the New Jersey Legislature and is currently awaiting action by the governor.
#NewJersey introduced A5747, which would define all #virtual currency sold to institutional investors as #securities. h/t to @kkirkbos to check this out! /1 https://t.co/f7vnwoentn
— Drew Hincks (@propelforward) December 5, 2023
Additionally, the Digital Assets and Blockchain Technology Act requires the state Treasury Department to review and approve a digital payment platform for government-approved businesses “in cash-intensive environments that cannot access traditional financial services and are forced to operate only or in cash.” The platform uses a virtual currency pegged to the US dollar and facilitates audits, compliance and local tax payments.
Assemblyman Conaway's office declined to comment on the bill when reached by Cointelegraph.
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