(BlockBar) Montana the “Big Sky Country” has also gone crypto friendly with its new legislation addressing the use of utility tokens in which utility tokens are exempted from security law.
Steve Bullock, the governor of the U.S. state of Montana, signed the bill into law. The utility token are exempted from being considered as securities under local rules. The bill was sponsored by State Representative Shane Morigeau. In the bill it is set out that utility token transactions are permissible as long as the purpose of the token is “primarily consumptive.”
But even this bill comes with certain restrictions. According to the bill the issuer must not market the token as for speculation or an investment. Other restriction include that the “consumptive purpose” of the utility token must be available within 180 days after its time of sale or transfer, in this the initial buyer is barred from re-selling or transferring the token until its consumptive purpose has become available.
It is to be noted that consumptive purpose is “provide or receive goods, services, or content including access to goods, services, or content.”
It is to be considered that federal rules supplant those at the state level laws. It is done so the real-world impacts of the bill are likely to be restricted to crypto issuances within the state and to state residents. This becomes another stepping stone on the way to clear regulations for such tokens in the U.S.
One of the harshest regulatory regimes for cryptos in the U.S. is FLorida. But Florida has passed a bill which initiates the formation of a task force within the Department of Financial Services. The force is required to develop a “master plan” for blockchain in the state.
“Blockchain technology and distributed ledger technology allow the secure recording of transactions through cryptographic algorithms and distributed record sharing, and such technology has reached a point where the opportunities for efficiency, cost savings, and cybersecurity deserve study,” the bill states.
Miami-based crypto lawyer Drew Hinkes said: “In my view, appointing a committee including both governments and specialists in the area are a critical way to start the conversation. Florida has made tremendous leaps in entrepreneurship and it’s a perfect place to start supporting this industry.”