US State Senators to Exempt Blockchain Tokens from Securities Laws

By Anne W. | March 3, 2019

Five Democratic and Republican senators have recently put forwards house bill 5595 with aims to relieve “open blockchain tokens” developers or vendors of the provisions of Rhode Island Uniform Securities Act.

The proposed legislation sees open blockchain tokens as digital assets which are created and stored in a distributed ledger. The tokens are included in trades and transference with no intermediaries or custodians. Thus, those who facilitate exchanges of such tokens are to not be deemed as broker-dealers so long as an electronic notice of intent is sent to the secretary of state beforehand.

However, the exemption is to be passed on the ground that open blockchain tokens are “only be exchangeable for, or provided for the receipt of, goods, services or content, including rights of access to goods, services or content,” and serve a “consumptive purpose” alone.

Further, should say the purpose is not available at the time of sale, “the initial buyer of the token is prevented from reselling the token until the token is available for use for a consumptive purpose.”

At the same time in Colorado, the senator-approved bill 23 dubbed the “Colorado Digital Token Act” is waiting to become state-approved in the near future.

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