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In a new legislative venture in the U.S. state of Utah titled the Blockchain Technology Act, the Legislative General Counsel approved a filling for a proposed bill that is designed to exempt blockchain firms, which by extension includes crypto firms, from the Money Transmitter Act. The bill was filed by Senator Daniel Hemmert from Utah.
Before now, crypto startups and firms involved in the creation of tokens or other blockchain-related products as well as the exchange or sale of blockchain-related products were considered money transmitters by law; and as such, they were subject to laws under the Money Transmitter Act in Utah.
However, it appears that this will not be the case soon in the state of Utah as the Republican Senator Daniel Hemmert filed a bill last week to exempt all blockchain or crypto firms involved in the creation, exchange and sale of blockchain-related products from Title 7, Chapter 25 of the Money Transmitter Act. Such companies will no longer be regarded as money transmitters and as such free from the laws under the Act.
Besides exempting crypto firms from the Money Transmitter Act, the recently proposed bill is also intended to further clarify complex terms related to blockchain technology; consequently, giving more insight to what blockchain technology is all about and how it should be employed in different use cases across different sectors of the economy, including government services.
According to the bill, a legislative task force consisting of 12 members will be created to study the potential applications of blockchain technology to government services.
This new task force will be saddled with the responsibility of reviewing current use cases of blockchain technology at the government level in other states in the United States, as well as other crypto-friendly countries across the globe. In addition, they are tasked with the responsibility of recommending a pilot project for blockchain technology using the information and knowledge gathered from the research. The task force will also be responsible for reviewing commercial applications of blockchain technology for future economic development in the state.
Furthermore, they are required to provide a report and maybe proposed legislation to committees such as the Business and Labor Interim Committee and the Legislative Management Committee. Also, they should be ready to make useful changes as the project continues.
I think making Utah a blockchain-friendly state is an energizing idea. Several other states in the U.S. have embraced this new technology and it hasn’t been bad so far. We hope to see how much changes this technology alongside more favorable legislation will bring to the state of Utah.