A senator in Western U.S State, Utah, has made a bold move to provide regulatory clarity for blockchain startups who are considering a move into their territory.
Republican senator Daniel Hemmert introduced the bill, Blockchain Technology Act to the State House on February 25 and is set to get a hearing from fellow legislators, today March 4.
If the legislative body reaches a favourable resolution on the bill, it is expected to pave the way for more crypto and blockchain-related businesses to set up in Utah.
Overview of Utah’s Blockchain Technology Act
The bill is seeking freedom from the state to exempt blockchain startups who offer certain products from the Money Transmitter Act (MTA).
Given that the MTA contains the list of regulations for financial companies who deal directly with money, the BTA is proposing an exclusion because some blockchain startups such as cryptocurrency exchanges do not provide monetary service to users.
Instead, these businesses offer crypto-to-crypto exchange services or use licenses third-parties to collect money from users.
The special treatment proposed by the bill would likely be equivalent to what we reported about Pennsylvania where the State’s Department of Banking clarified that cryptocurrency exchanges are not money transmitters.
Aside from exempting blockchain startups from the MTA, the bill also proposed the creation of a new task force to
review how Utah can tap into blockchain technology to improve government services
review what is already obtainable in other U.S States
suggest a blockchain-based pilot project for Utah State
review the possible commercial applications of blockchain technology to boost the state’s economic activities in the future
The bill also set a timeline for the creation of the task force, requesting that if passed into law, then the group would have to submit a report on their finding, either on or before November 30, 2019.
The latest move by the lawmaker in Utah adds the region to the list of U.S states seeking to provide regulatory clarity and encourage innovation at the local level. In the past, Stmarket.co has reported the introduction of landmark blockchain and crypto legislation in Wyoming, New Hampshire, Colorado and Rhode Island.
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