yobit.net вход yobit.net вход
Montana Exempts Utility tokens from Securities Laws – Coinnounce

Montana Exempts Utility tokens from Securities Laws

The state of Montana joins the list of crypto friendly states in the United States of America with its recent legislation that exempts utility tokens from securities laws. This legislation, House Bill  584, was asserted by the governor of the state, Steve Bullock on the 8th of May. It was titled “Generally revise laws relating to cryptocurrency.” This step is a giant stride in the quest of mainstream crypto adoption in the state.

State Representative Shane Morigeau initiated the bill, and it had its first reading in February 2019. The bill is stipulated to come into effect as from July 1.

According to the new law, a utility token is defined as a digital token that is created, recorded on the blockchain, and as well have the capacity of being exchanged without a third party. Also, it can be issued to enable owners to access a good or service delivered by the issuer without vesting the holder with any ownership interest or equity interest in the issuer. In essence, the legislation gives cryptocurrency the power of usage as a legal tender.

Further, the bill noted that utility token transactions, however, have to meet some requirements with the sole purpose of being “primarily consumptive.” Meanwhile, the use of the token for speculative or investment purposes is prohibited. The prohibition of the use of the token for speculative or investment purposes is against the popular trend that trails the use of cryptocurrency. There is a higher preference for use speculatively or for investment than other purposes.

However,  despite the exemption of utility token from the state securities law, issuers are still to interact with the securities commissioners, and a notice of intent must be filed for such a token to be sold.

The recent step taken by the state of Montana is similar to the previous path trodden by the state of Wyoming and Colorado to make the states Crypto friendly. Wyoming passed legislation to recognize Cryptocurrency as money in January 2019, and subsequently, Colorado passed cryptocurrency exemptions to its digital token act. This signals the growth of mainstream Crypto adoption in the United States of America.

Janet F. Sanchez

Janet Sanchez writes articles which, considering where you’re reading this, makes perfect sense. She is best known for writing cryptocurrency related news and blogs. She also writes about business, finance, and technology. Working from home and taking care of her little son, she has a passion for writing.

Share
Published by
Janet F. Sanchez

Recent Posts

JPMorgan: Bitcoin Markets Now Have a Greater Influence from Institutional Investors

JPMorgan Chase, the largest bank in the US in a recent report outlined that the Bitcoin markets have changed since…

1 hour ago

Coincheck Hack: Associated with Russian Hacker Group

New findings into Coincheck, a Japan-based cryptocurrency exchange that was hacked in January 2018 reveals that employees’ computers were infected…

2 hours ago

The Bitmain Lawsuit: Seeking $4 Million from Ex-employees

Bitmain, one of the largest cryptocurrency mining companies in the world is suing three of its ex-employees for launching a…

2 hours ago

Facebook Libra Association: All you need to know

The cryptocurrency industry space has seen growth and massive innovations in recent times. The recent trend in the industry has…

7 hours ago

Ripple Price Analysis, 17th June: XRP trading with a Bullish Momentum

XRPUSD Dominant Trend: Bullish Resistance Levels: $0.46, $0.48, $0.50 Support Levels: $0.38, $0.36, $0.34   Ripple Price Analysis At the…

13 hours ago

Ethereum Price Analysis, 17th June: ETH Following Bitcoin

ETH/USD Dominant Trend: Bullish Resistance Levels: $290, $300, $310 Support Levels: $230, $220, $210   Ethereum Price Analysis Ethereum price…

13 hours ago

This website uses cookies.