- This month in state digital asset policy, Illinois, Louisiana, and Minnesota considered a variety of digital asset legislation, reflecting a growing trend of state-level interest in regulating blockchain and crypto.
- From Illinois weighing a licensing framework, to Louisiana advancing legislation for DAOs, states are showcasing unique approaches toward regulating the industry.
- Minnesota is considering disclosure requirements for virtual currency kiosk operators. Arizona vetoed changes to its regulatory sandbox program impacting blockchain technology projects.
- Read our state digital asset policy news roundup and share our thread on X and LinkedIn.
April 2024 marked an important month for digital asset legislation across the US. With states like Illinois, Louisiana, Minnesota, and Arizona deliberating new regulations, the landscape of digital asset management and innovation continues to evolve. We explore these legislative efforts, their implications, and the broader trends they signal for digital asset regulation in the United States.
Illinois: Digital Asset Regulation Act (SB 3666)
On April 17, the Illinois Senate Executive Committee held a subject matter hearing on SB 3666, a proposed law that would establish a licensing framework for digital asset businesses, similar to New York’s BitLicense. Industry stakeholders are especially concerned with the bill’s expansive scope and lack of resources for regulators. The bill remains under committee review, with a critical legislative deadline looming in early May (Read SB 3666’s Text).
Louisiana: DAO Legislation
Legislation in Louisiana aims to make it easier for DAOs to operate in the state, positioning Louisiana alongside Wyoming in pioneering legal frameworks for these innovative governance mechanisms. HB 892 facilitates a form of organization that operates via smart contracts on blockchain technology. The legislation is intended to attract technology entrepreneurs to the state, fostering innovation and potentially creating a new hub for digital asset ventures. The bill passed the State House of Representatives on April 18 and is currently being considered by the Senate Committee on Commerce, Consumer Protection and International Affairs. Insights from the CCI’s support letter in February underline the community and economic benefits anticipated from such regulatory advancements.
Minnesota: Tightening Regulations on Virtual Currency Kiosks
Minnesota’s legislature is determining how to respond to the increase of virtual currency kiosks. This year’s Omnibus Commerce Policy bill (SF 4097) includes disclosure requirements for certain kiosk operators. The bill is currently undergoing a conference process, after passing both houses of the state legislature. It remains to be seen how this will impact other states considering these measures (Read more about SF 4097).
Arizona: SB 1366 Veto
Despite bipartisan support and the successful passage through both legislative chambers, Governor Hobbs vetoed SB 1366. This bill would have bolstered blockchain technology initiatives in the state’s regulatory sandbox program. The veto, detailed in the Governor’s veto letter, was based on concerns over the scope and intent of the bill. There have been several successful blockchain technology projects that have participated in its sandbox program.
The Landscape of State-Level Digital Asset Legislation
An analysis conducted by CCI reveals a robust legislative landscape, with 165 digital asset bills across various states touching on themes from stablecoins to blockchain technology uses. This legislative activity not only showcases the evolving nature of the digital asset sector but also highlights the diverse approaches states are taking to address these complex issues.
As states continue to spearhead regulatory innovations, the impact on the national regulatory frameworks becomes increasingly significant. These developments suggest a trend that could shape the future of digital finance and blockchain technology innovation in the US.
Check out our March state digital asset policy update here.
March State Digital Asset Legislation: Wyoming, Illinois, and Utah
