As the companies understand the significance of Blockchain solutions and Cryptocurrency, it’s also important for states to understand this tech. Some of the U.S. states understand the importance and advantages of Blockchain technology and have either deployed or are considering legislation to surface the way for Crypto use. In that list, a new state now has joined to this space. Becoming the latest US states to embrace Blockchain-based solutions, a bill being considered by lawmakers in Utah that would exempt Blockchain firms from being defined as money transmitter companies, and let them free from the binds of the federal Money Transmitter Act (MTA).
Last week, Senate Bill 213, “Blockchain Technology Act,” was introduced by Senator Dan Hemmert that defines and clarifies blockchain technology-related terms, exempts a person who facilitates the creation, exchange, or sale of certain Blockchain technology-related products from Title 7, Chapter 25 Money Transmitter Act. The bill would make a legislative task force, which it called the “Blockchain Pilot Evaluation Task Force” that would be accountable for drafting Blockchain legislation and for studying the technology to assist Utah to make state policies. The task force would be a 12-member team and would initially begin by researching Blockchain’s potential in assisting the government with its duties. After the completion of the study, the task force would move on to assess how the Blockchain could be deployed to commercial applications for economic development in the state. That report would then be delivered to the Senate Committee on Business and Labor and the Legislative Management Committee.
As per the MTA, money transmitters provide the sale or issuance of a payment instrument or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including payment instrument, wire, facsimile, or electronic transfer. Senate Bill 213 looks to side-step that specifically stating that a Blockchain token is not a form of money transmission.