Blockchain and Virtual Currency Law:
Statutes, Regulations, and Pending Legislation Affecting Blockchain and Virtual Currency
Alabama does not specifically address blockchain technology in any of its statutes or regulations. However, its money transmission statute references virtual currency. Alabama has also adopted RUFADAA for the management of digital assets of deceased or incapacitated persons and a Marketplace Facilitator statute that references virtual currency.
Money Transmitter
Alabama's Money Transmission statute defined "monetary value" as a "medium of exchange, including virtual or fiat currencies, whether or not redeemable in money." Money Transmission includes "receiving monetary value for transmission." Persons engaged in money transmission are required to obtain a license.
RUFADAA
Alabama has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Marketplace Facilitator
Alabama's Marketplace Facilitator statute defines a Marketplace Facilitator to include a person that contracts with sellers to facilitate the sale of the seller's products and provides a virtual currency that purchasers are allowed or required to use to purchase products from the seller.
Alaska does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Alaska has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Arizona has adopted several statutes that affect blockchain technology and virtual currency.
UETA
Arizona has amended its Electronic Transactions Act. It defines "blockchain technology" and "smart contracts." The amended law specifically states that signatures and records secured through blockchain technology are considered electronic signatures and electronic records, respectively.
Firearm Tracking Blockchain Technology
In one of the more unusual statutory applications, Arizona criminalizes subjecting a person to an electronic firearm tracking technology that uses blockchain technology.
Prohibition of Political Subdivision Regulation
Arizona prohibits political counties, cities, and towns from restricting individuals from running a node on a blockchain.
Corporate Writings
Arizona amended its Corporations and Associations statute to specifically include blockchain technology to satisfy any requirement that something be written or in writing.
Securities Offerings
Arizona also amended its Sales of Securities statute to define "virtual coin" and "virtual coin offering" and exempt them from certain securities provisions if they meet certain conditions.
RUFADAA
Like most states, Arizona has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Arkansas has amended its Electronic Transactions Act to contemplate the use of blockchain technology and has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
UETA
Arkansas amended its Electronic Transactions Act to specifically include signatures and records secured through blockchain technology under the definitions of "electronic signature" and "electronic record," respectively. The law also oddly defines "blockchain distributed ledger technology" to mean "technology that [among other things] provides an uncensored truth."
RUFADAA
Arkansas has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
California has adopted several laws contemplating the use of blockchain technology in Government, Corporate, and Penal Codes. It has also published regulations regarding the use of cryptocurrencies in the context of campaign contributions.
Government Code
California passed a bill that authorized the creation of a blockchain working group. In that statute, it defined (for the purposes of that chapter only) blockchain to mean "a mathematically secured, chronological, and decentralized ledger or database."
Corporate Code
California passed a bill that allows corporations and social purpose corporations in certain situations to record issuances and transfers of stock by mean of blockchain.
Penal Code
California criminalizes the selling of raffle tickets in exchange for Bitcoin or any other cryptocurrency.
Campaign Contribution Regulation
California published regulations that prohibit persons from making or receiving contributions in cryptocurrencies.
RUFADAA
California has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Colorado has adopted several blockchain statutes and regulations that affect blockchain technology and virtual currency.
RUFADAA
Colorado has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Research
In several statutes, Colorado directs state agencies and state universities to research blockchain technology's application to encryption, data integrity, and cybersecurity.
Prohibition of Regulation by Political Subdivisions
Colorado prohibits counties and municipal governments from imposing taxes or fees on the use of distributed ledger technologies or from requiring a person to obtain a license to use the same.
Campaign Contribution Regulation
Colorado adopted regulations allowing committees to accept contributions in cryptocurrencies, up to the acceptable limit for cash contributions. The value of the contribution is determined to be the value at the time of the contribution. Further requires the committee to report on any gain or loss as other income or receipts.
Securities
In March, 2019, the Colorado governor signed into law the Colorado Digital Token Act, which provides a limited exemption from securities registration requirements for issuing consumptive, non-speculative digital tokens.
Advisory Group
In May, 2019, the Colorado governor signed into law a bill that directed the Commissioner of Agriculture to appoint and convene an advisory group to study potential applications for blockchain technology in agricultural operations.
Connecticut has amended their money transmitter statute to contemplate virtual currency and adopted RUFADAA for the disposition of digital assets belonging to deceased or incapacitated persons.
Money Transmission
Connecticut has amended their Money Transmitter Law to include and define virtual currency:
(18) “Virtual currency” means any type of digital unit that is used as a medium of exchange or a form of digitally stored value or that is incorporated into payment system technology. Virtual currency shall be construed to include digital units of exchange that (A) have a centralized repository or administrator; (B) are decentralized and have no centralized repository or administrator; or (C) may be created or obtained by computing or manufacturing effort. Virtual currency shall not be construed to include digital units that are used (i) solely within online gaming platforms with no market or application outside such gaming platforms, or (ii) exclusively as part of a consumer affinity or rewards program, and can be applied solely as payment for purchases with the issuer or other designated merchants, but cannot be converted into or redeemed for fiat currency.
The law requires money transmitters that receive, store, or maintain custody or control of virtual currency on behalf of another person to at all times hold virtual currency of the same type and amount owed to such other person.
RUFADAA
Connecticut has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Delaware has adopted a statute that amended its Corporate Code to contemplate corporations' use of blockchain in its corporate governance function. It has also adopted the Uniform Fiduciary Access to Digital Assets Act (UFADAA).
Corporate Code
Delaware permits corporations to store shareholder lists and other business records using electronic networks or databases (including distributed networks and databases) so long as the records can be converted into clearly legible paper form within a reasonable time. In June, 2019, Delaware similarly amended its Partnership statute to specifically permit Delaware partnerships to use distributed ledger technology for the creation and maintenance of partnership records.
UFADAA
Delaware has adopted the Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
There are no statutory or regulatory provisions addressing blockchain technology, virtual currency, or digital assets.
Florida has amended its money laundering statute in its Penal Code to contemplate the use of virtual currency. It has also adopted RUFADAA and created a blockchain task force to make further legislative and executive recommendations.
Penal Code
Florida amended its money laundering statute to define "monetary instruments" to include "virtual currency" and provide criminal liability for concealing and disguising funds, regardless if the funds are virtual or fiat.
RUFADAA
Florida has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Task Force
In May, 2019, the governor signed a law that will create the Florida Blockchain Task Force, which will explore and develop a master plan for fostering the expansion of the blockchain industry in Florida. It will recommend policies and state investments and shall study if and how a state, county, and municipal governments can benefit from a transition to a blockchain-based system.
Georgia has authorized its Department of Banking and Finance to enact money transmission rules applicable to virtual currency. It has also adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
Money Transmission
In 2016, Georgia amended its money transmitter statute to define "virtual currency" and authorize its Department of Banking and Finance to enact rules and regulations that apply solely to persons engaged in money transmission or the sale of payment instruments involving virtual currency. "Monetary value" is broadly defined in the statute to mean "a medium of exchange, whether or not redeemable in money." The Department has taken action against a cryptocurrency trading platform for engaging in unlicensed money transmission.
RUFADAA
Georgia has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Hawai'i does not have any statutes or regulations that specifically reference blockchain technology. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Hawai'i has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Idaho does not have any statutes or regulations that specifically reference blockchain technology. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons and has issued guidance that relates to virtual currency exchanges.
RUFADAA
Idaho has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Money Transmitter Law
Idaho does not specifically contemplate virtual currency in its money transmitter statute. However, the Idaho Department of Finance has provided the following guidance on its website:
"Virtual Currency Exchangers. If you act as a virtual/digital currency exchanger and accept legal tender (e.g., government backed/issued “fiat” currencies) for later delivery to a third party in association with the purchase of a virtual currency, then you must be licensed as a money transmitter with the Department of Finance."
Illinois does not have any statutes or regulations that specifically reference blockchain technology. However, it has adopted RUUPA, which includes virtual currency under the definition of property, and RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUUPA
Illinois has adopted the Revised Uniform Unclaimed Property Act, which defines property to include virtual currency.
RUFADAA
Illinois has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Money Transmission
Illinois's Transmission of Money Act ("TOMA") does not specifically contemplate virtual currency. However, its guidance clarifies that persons engaged in the transmission of solely virtual currencies are not engaged in licensed activities:
[A]lthough digital currencies are a digital representation of value that is used as a
medium of exchange, store of value, or unit of account, they are not considered money for the
purposes of TOMA as digital currencies have not been “authorized or adopted by a domestic or
foreign government as a part of its currency.” A person or entity engaged in the transmission of
solely digital currencies, as defined, would not be required to obtain a TOMA license. However,
should transmission of digital currencies involve money in a transaction, that transaction may
be considered money transmission depending on how the transaction is organized. Any person
or entity engaging in a transaction involving both digital currencies and money should request a
determination from the Department on whether or not such activity will require a TOMA
license.
Indiana does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Like most states, Indiana has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.]]>
Iowa does not specifically address blockchain technology in any of its statutes or regulations. However, Iowa has also adopted RUFADAA for the management of digital assets of deceased or incapacitated persons and a Marketplace Facilitator statute that references virtual currency.
RUFADAA
Iowa has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Marketplace Facilitator
Iowa's Marketplace Facilitator statute defines a Marketplace Facilitator to include a person that contracts with sellers to facilitate the sale of the seller's products and provides a virtual currency that purchasers are allowed or required to use to purchase products from the seller.
Kansas does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Kansas has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Kentucky does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons and RUUPA that treats obligations related to abandoned virtual currency.
RUFADAA
Kentucky has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
RUUPA
Kentucky adopted the Revised Uniform Unclaimed Property Act, which includes virtual currency under the definition of property and subjects it to escheatment obligations.
There are no statutory or regulatory provisions addressing blockchain technology.
Maine does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Maine has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Maryland does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Maryland has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
There are no statutory or regulatory provisions addressing blockchain technology. However, the MA Department of Revenue published regulations in 2017 about marketplace facilitators that included virtual currency.
Marketplace Facilitator
Massachusetts defines a "Marketplace Facilitator" to include a person that contracts with sellers to facilitate the sale of the seller's products and provides a virtual currency that purchasers are allowed or required to use to purchase products from the seller.
Michigan has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Michigan has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Minnesota has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons. It has also published regulations specifically stating that offerings related to cryptocurrencies are not eligible to be exempted from Minnesota's securities registration requirement.
RUFADAA
Minnesota has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Cryptocurrency offerings
In June 2016, the MN Department of Commerce published rules clarifying that ICOs are not eligible for the MNvest exemption from Minnesota's securities registration requirement.
Mississippi has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Mississippi has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Missouri has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Missouri has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Montana has adopted RUFADAA for the management of digital assets of a deceased or incapacitated person by a fiduciary.
RUFADAA
Montana has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Securities
In May, 2019, the governor signed into law a bill that amended its securities statute to exempt from registration requirements utility tokens that satisfy certain requirements.
Nebraska has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Nebraska has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
UETA
Nevada has amended its Electronic Transactions Act to define "blockchain" and define "electronic record" to include blockchain. In June, 2019, it further amended the act to clarify that when a person uses a public blockchain to secure information that the person owns or has rights to, that person does not relinquish that ownership or those rights.
Restrictions on Political Subdivisions
Nevada passed two laws that prohibit cities and counties from imposing taxes, fees, licensing obligations, or other requirements on the use of blockchain.
Corporate Law
In June, 2019, Nevada amended its Business Associations code to explicitly permit business entities to store records creating in the ordinary course of business on a blockchain.
Taxation
In June, 2019, Nevada amended its tax code to include virtual currencies under its definition of "intangible personal property," which is exempt from taxation.
RUFADAA
Nevada has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
New Hampshire has amended its money transmitter statute to contemplate the sale of virtual currency. It also established an advisory commission on cryptocurrency.
Money Transmitter Law
New Hampshire amended its money transmitter statute to define convertible virtual currency as a:
"a digital representation of value that:(a) Can be a medium of exchange, a unit of account, and/or a store of value;(b) Has an equivalent value in real currency or acts as a substitute for real currency;(c) May be centralized or decentralized; and(d) Can be exchanged for currency or other convertible virtual currency.
Blockchain Task Force
In August, 2019, New Jersey adopted a law that creates a New Jersey Blockchain Initiative Task Force to study if State, county, and municipal governments can benefit from a transition to a blockchain-based system for recordkeeping and service delivery.
RUFADAA
New Jersey has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Marketplace Facilitator
New Jersey's Marketplace Facilitator statute defines a Marketplace Facilitator to include a person that contracts with sellers to facilitate the sale of the seller's products and provides a virtual currency that purchasers are allowed or required to use to purchase products from the seller.
New Mexico does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
New Mexico has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
RUFADAA
New York has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Task Force
In late 2018, the New York legislature passed a bill that established a digital currency task force to provide the governor and the legislature with information on the effects of widespread use of cryptocurrencies and other forms of digital currencies.
Bitlicense Regulatory Regime
The New York Department of Financial Services published regulations governing Virtual Currency Business Activities. The regulations require non-exempt persons who engage in Virtual Currency Business Activities to obtain a license, establish compliance programs, comply with certain capital and consumer protection requirements, and submit to regulatory examinations.
Virtual Currency Business Activities is defined to include: (1) receiving or transmitting virtual currency (except where the transaction is for a non-financial purpose); (2) storing, holding, or maintaining custody or control of virtual currency; (3) buying and selling virtual currency as a customer business; (4) performing exchange services as a customer business; (5) and controlling, administering, or issuing a virtual currency.
The North Carolina legislature has amended its Money Transmitter statute to address virtual currency, and the North Carolina State Board of Elections & Ethics Enforcement has issued an opinion regarding the permissibility of accepting cryptocurrency as campaign contributions. North Carolina has also adopted RUFADAA.
Money Transmitter
North Carolina amended its Money Transmitter statute to define virtual currency and submits those who maintain virtual currency on behalf of others to licensing obligations required of money transmitters.
Political Contributions
In 2018, the State Board of Elections & Ethics Enforcement issued an advisory opinion stating that they "did not approve the use of cryptocurrencies to make donations to political committees in North Carolina."
RUFADAA
North Carolina has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
North Dakota has amended its Electronic Transactions Act to contemplate the use of blockchain technology and has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
UETA
In April, 2019, the North Dakota governor signed into law an act that amended its Electronic Transactions Act. Under the new law, signatures and records secured through blockchain technology fall under the definitions of "electronic signature" and "electronic record," respectively. It also allows "smart contracts" to exist in commerce.
RUFADAA
North Dakota has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Ohio has amended its Electronic Transactions Act to contemplate the use of blockchain technology and has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
UETA
Ohio amended its Electronic Transactions Act to specifically include signatures and records or contracts secured through blockchain technology under the definitions of "electronic signature" and "electronic record," respectively.
RUFADAA
Ohio has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Oklahoma has amended its Electronic Transactions Act to contemplate the use of blockchain technology, and has added a comment to its commercial code addressing cryptocurrency transfers.
UETA
Oklahoma amended its Electronic Transactions Act to specifically include signatures and records or contracts secured through blockchain technology under the definitions of "electronic signature" and "electronic record," respectively.
Secured Transactions
Oklahoma added a comment to its Article 9 of its Commercial Code (governing secured transactions) to state that a cryptocurrency transferee does not take cryptocurrency free and clear of liens:
As of 2015, the use of so-called “bitcoins” and the like have gained traction as a form of “currency,” i.e., as a payment method. Some sellers of goods or services are willing and able to accept bitcoins in payment. If that payment instead were made in cash, or by a check or other transfer out of a deposit account, any security interest in that, e.g., as proceeds of the deposit account based on the claim of a secured party that has a security interest in inventory, would not impair the payment to the seller or other transfers to a third party. See section 1-9-332 and section 1-9-315(a)(2), (c) and (d). This is a consistent policy under UCC Article 9 -- see, for example, sections 1-9-320 and section 1-9-321, and is particularly strong with respect to “currency.” However, section 1-9-332 cannot be construed to protect the receiver of bitcoins. Whether the policy mentioned above should allow a court to reach the same result remains an unanswered question.
Oregon has adopted several statutes and regulations that impact cryptocurrency:
Self-Sufficiency Programs
The Oregon Department of Human Services published rules defining "cryptocurrency", "mining", and "wallets" in a rule that establishes the treatment of cryptocurrencies for the purposes of eligibility for self-sufficiency programs. It treats cryptocurrency differently based on how its obtained.
Political Contributions & Government Receipt of Cryptocurrency
In its 2018 Campaign Finance Manual, Oregon allows political contributions to be made in cryptocurrency. The value of the cryptocurrency is the market value of the contribution the day it is received. However, in May, 2019, a bill was signed into law prohibiting the state government from accepting payments in cryptocurrency. It also prohibits persons from making contributions to political candidates, political committees, or petition committees in the form of cryptocurrency.
Money Transmitter
While not mentioning cryptocurrency specifically, Oregon's money transmitter law was modified in 2015, and the definition of "money" was amended to broadly include: "A medium of exchange that represents value that substitutes for currency but that does not benefit from government regulation requiring acceptance of the medium of exchange as legal tender."
RUFADAA
Oregon has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
There are no statutes or regulations specifically addressing virtual currency. However, Pennsylvania's money transmitter law was modified in 2015 in a way that may impact cryptocurrencies.
Money Transmitter
While not mentioning cryptocurrency specifically, PA’s MTL law was modified, and money was defined broadly to include “any other product that is generally recognized as a medium of exchange.”
There are no statutes or regulations that address blockchain technology.
Licensing Requirement
In July, 2019, Rhode Island defined "currency transmission" to include maintaining control of virtual currency and transacting virtual control on behalf of others. Businesses (except certain exempted entities) engaged in currency transmission for a fee or other consideration are required to obtain a license in Rhode Island. Licensees must pay a licensing fee and satisfy minimum capital and bonding requirements.
Insurance Division
In December 2018, the Rhode Island Insurance Division issued a bulletin that:
South Carolina does not specifically address blockchain technology in any of its statutes or regulations. However, its money transmission statute defines "stored value" broadly that may implicate cryptocurrency. It has also adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
Money Transmitter
"Stored value" is defined as "monetary value that is evidenced by an electronic record," and "monetary value" is defined as a "medium of exchange, whether or not redeemable in money." This may have implications for custodians of cryptocurrency.
RUFADAA
South Carolina has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
South Dakota has amended its Electronic Transactions Act to contemplate the use of blockchain technology and has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
UETA
South Dakota amended its Electronic Transactions Act to specifically include signatures and records secured through blockchain technology under the definitions of "electronic signature" and "electronic record," respectively.
RUFADAA
South Dakota has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.]]>
Tennessee has adopted several statutes that contemplate blockchain technology:
UETA
Tennessee has amended its Electronic Transactions Act. It defines "distributed ledger technology" and "smart contracts." The amended law specifically states that signatures and records secured through blockchain technology are considered electronic signatures and electronic records, respectively.
RUFADAA
Tennessee has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
RUUPA
Tennessee adopted the Revised Uniform Unclaimed Property Act, which includes virtual currency under the definition of property and subjects it to escheatment obligations.
Political Contributions
Political contributions made through digital currency are explicitly permitted under Tennessee law. The value of the contribution is the market value of the digital currency at the time the contribution is received. The Tennessee statute establishes rules on the increase in value and mandates the sale of the digital currency prior to its spending.
Money Transmission
While not specifically addressed in Tennessee's money transmitter act, the Tennessee Department of Financial Institutions issued a memo in 2015 that stated that cryptocurrency is not money under the act, nor is exchanging one cryptocurrency for another. However, exchanging cryptocurrency for fiat currency through a third party exchange is generally money transmission, not because of the cryptocurrency involved, but because the exchange holds funds until it determines the transfer of cryptocurrency has been completed. It also states that exchange of cryptocurrency for fiat currency through an automated machine is usually but not always money transmission.
Corporate Law
In June, 2019, Texas amended its business organizations code to explicitly allow books, minutes, records, and membership records of any filing entity to be maintained on a distributed electronic network, including ones that use blockchain technology.
Penal Code
In June, 2019, Texas amended its money laundering statute. The definition of "funds" was amended to include "digital currency."
RUFADAA
Texas has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
RUUPA
Utah has adopted the Revised Uniform Unclaimed Property Act, which defines property to include virtual currency.
RUFADAA
Utah has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Regulatory Sandbox
In March, 2019, the Utah Governor signed a bill into law to create a regulatory sandbox program. It will allow sandbox participants that want to provide innovative financial products or services to consumers to receive waivers from certain statutory or regulatory requirements (such as money transmission license).
Money Transmission
In March, 2019, the Utah Governor signed the Blockchain Technology Act into law, which specifically exempts the sale, distribution, and exchange of "blockchain tokens." Blockchain tokens are electronic records that are (a) recorded on a blockchain and (b) capable of being traded between persons without an intermediary.
Vermont has adopted several laws that contemplate blockchain technology:
Money Transmitter
Vermont amended its money transmitter statute to define "virtual currency" as "stored value," and "stored value" as "monetary value with an electronic record." Since receiving monetary value for transmission to a location within or outside the United States qualifies as Money Transmission, the activity of digital currency custodians who deal solely in digital currency would be covered.
Rules of Evidence
Vermont amended its Rules of Evidence to consider records stored on blockchain technology. It treats digital records electronically registered in a blockchain as self-authenticating if it is accompanied by a written declaration and specific information about the record. It also is treated similarly to a business record and subject to an exception from the hearsay rule.
LLC Act
Vermont amended its LLC Act to establish "Blockchain-based limited liability companies" ("BBLLC") which are companies that utilize blockchain technology for a material portion of its business activities. The act establishes certain obligations on BBLLC's, including specification of rights and obligations of each group of participants within the BBLLC. Participant is broadly defined to include each person that has a partial or complete copy of the decentralized ledger or otherwise participates in the validation processes.
RUFADAA
Vermont has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Virginia does not specifically address blockchain technology in any of its statutes or regulations. However, it has adopted RUFADAA for the management of digital assets of deceased or incapacitated persons.
RUFADAA
Virginia has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Washington has adopted a few statutes that relate to blockchain technology:
UETA
In April, 2019, the Governor signed into law a bill that amends its Electronic Authentication Act to define "blockchain" and "distributed ledger technology." It also clarifies that electronic records may not be denied legal effect, validity, or enforceability solely because it is generated, communicated, reviewed, or stored using distributed ledger technology.
Money Transmitter
Washington amended its money transmitter statute to define "monetary transmission" to include virtual currency and bring virtual currency activity within the ambit of the money transmitter statute, requiring a license. The applicable regulations exclude the storage of virtual currency from coverage by the act when the person storing does not have unilateral ability to transmit the value being stored.
Marketplace Facilitator
Washington's Marketplace Facilitator statute defines a Marketplace Facilitator to include a person that contracts with sellers to facilitate the sale of the seller's products and provides a virtual currency that purchasers are allowed or required to use to purchase products from the seller.
RUFADAA
Washington has adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
RUFADAA
West Virginia has adopted Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Money Laundering
West Virginia amended its money laundering statute in its penal code to define "cryptocurrency" and include the definition of "monetary instruments."
There are no statutory or regulatory provisions addressing blockchain technology.
Wyoming has enacted statutes that implicate blockchain technology in the money transmission, securities registration, and fiduciary access contexts.
Money Transmitter
In 2018, Wyoming amended its Money Transmitters Act to clarify that the Act does not apply to the buying, selling, issuing, or taking custody of payment instruments in the form of virtual currency or receiving virtual currency for transmission. The Act also does not apply to a person who develops, sells, or facilitates the exchange of an open blockchain token.
Securities
Wyoming's Securities Act classifies open blockchain tokens with certain consumptive qualities to be intangible personal property. As a result of this classification, sellers would not be required to seek exemptions from securities registration obligations. Wyoming also allows corporations to issue certificate tokens in lieu of stock certificates.
RUFADAA
Wyoming has enacted the Revised Uniform Fiduciary Access to Digital Assets Act, which provides fiduciaries a path to managing digital assets (which could include cryptocurrencies held by digital currency exchanges) of deceased or incapacitated persons.
Fintech Sandbox
In February, 2019, the Wyoming governor signed a bill that creates a financial technology ("fintech") sandbox, which allows companies that want to provide innovative financial products or services to consumers to apply for waivers from certain statutory or regulatory requirements.
Filing System
The Wyoming Secretary of State has been authorized to develop and implement a blockchain filing system by December 31, 2021.
Special Purpose Depository Institutions
Wyoming authorizes the creation of Special Purpose Depository Institutions. Unlike traditional banks, SPDIs will not need to be FDIC insured, thus removing federal approval and oversight as an obstacle.
Secured Transactions
Wyoming amended their UCC statute to address virtual currency. It classifies digital consumer assets, digital assets, and virtual currency as intangible person property and dictates the perfection methods of security interests in them.