Summary
- This month in state digital asset policy, Wyoming sets a significant precedent with SF 50, creating a legal framework for Decentralized Autonomous Organizations (DAOs).
- Illinois advances the Uniform Money Transmission Act (SB 3412), aiming to streamline regulations for money transmitters and digital asset businesses.
- Louisiana works to extend its virtual currency business activity program, and Utah protects digital asset owners’ privacy with new legislation.
- Read our state digital asset policy news roundup and share our thread on X and LinkedIn.
This month in state digital asset policy, we see legislative activity at the state-level continue to shape how digital assets and blockchain technology are regulated. States across the US are working to develop regulatory frameworks that support growth and protect consumers. March was no exception, with major developments from across the nation, including in Wyoming and Utah. These mark important steps forward in the recognition and regulation of digital assets and highlight a broader trend of proactive engagement with the digital future.
Wyoming Paves the Way for DAOs
Wyoming has sought to be at the forefront of blockchain and digital asset legislation, and this trend continued with the recent enactment of SF 50. Signed into law by Governor Mark Gordon, SF 50 creates a legal structure specifically tailored for Decentralized Autonomous Organizations (DAOs), entities that utilize blockchain technology to operate without centralized control. This legislative move is a major boon for the Web3 community, providing a solid legal foundation for DAOs in the state. CCI’s support letter highlights the significance of this development and its potential to attract innovative blockchain projects to the state.
Illinois Streamlines Money Transmission
In Illinois, the advancement of the Uniform Money Transmission Act (SB 3412) by the Senate Executive Committee represents another critical step towards standardizing the state-level regulatory framework for money transmitters. This bill aims to implement nationwide standards that streamline the supervision of money transmission, including digital asset businesses operating with Money Transmitter Licenses (MTLs) in Illinois. Notably, the Committee opted to exclude problematic stablecoin language from the bill, avoiding potential pitfalls that could have hampered its effectiveness.
Louisiana Considers Extending Its Virtual Currency Regulations
The legislative landscape for digital assets in Louisiana saw movement with the passage of legislation SB 28 by the State Senate. This bill, now being considered by the Louisiana House, would extend the state’s virtual currency business activity program, signifying a growing recognition of the importance of digital assets in the state’s economy.
Utah Enhances Privacy Protections
Meanwhile, Utah has taken a significant step in protecting the privacy of digital asset owners. With Governor Spencer Cox’s signing of HB 118, Utah has put in place protections against the unlawful compulsion to produce private keys. Private keys are cryptographic tools crucial for proving ownership and authorizing transactions in the digital asset space. This legislation, effective May 1, underscores the importance of privacy and security for digital asset holders across the United States. Similar privacy-focused legislation is also being considered in Rhode Island.
As US states continue to take steps to integrate digital asset technologies into their economies, the future for blockchain and cryptocurrencies looks increasingly promising. By continuing to monitor and engage on these legislative efforts, industry stakeholders can help to ensure that the digital asset ecosystem evolves in a way that balances innovation with consumer protection and market integrity. As we move forward, states must work proactively to support a more unified and cohesive regulatory environment for digital assets nationwide.
Check out our February state digital asset policy update here.