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The complicated laws surrounding cryptocurrencies keep getting more and more complex as a new bill, which was proposed in the state of Rhode Island – and due to bipartisan support will likely to pass – will exclude some of the various digital tokens from security laws. This new bill was presented on February 27 and will undoubtedly have an impact on the usage of cryptocurrencies in the region.
How does the new bill treat cryptocurrencies?
The new bill that has been introduced in Rhode Island does not provide users complete freedom over the use of cryptocurrencies. Unlike some countries out there such as Bangladesh that have completely banned the use of cryptocurrencies in the nation, the new bill in Rhode island prohibits users from selling and marketing any crypto token as an investment.
The new bill that has been proposed allows the free usage of crypto tokens that have a “consumptive” utilization. This means that tokens that offer the consumers some product or service in return can be freely exchanged in the region. This bill prohibits the sale of tokens that are solely meant for investment purposes; users are not allowed to sell such tokens, and ones who have bought them from a broker are prohibited from reselling them on the market.
Colorado General Assembly has also introduced a parallel legislation. The Colorado Digital Token Act will limit the freedom that crypto traders have regarding the treatment of virtual currencies as securities if they’re not functional. This bill will limit the exemptions from securities registration and the security broker-dealer and the salesperson licensing requirements for traders who deal with cryptocurrencies.
What does this bill mean to the crypto world?
The H5595 bill that has been introduced in Rhode island will certainly have a huge impact on the usage of cryptocurrencies in the state. Since the majority of popular cryptocurrencies are advertised as investment options, this new bill will definitely put an end to such an alleged marketed opportunity.
Additionally, the crypto world will also lose a considerable number of active investors who typically invest in cryptocurrencies for the high return on investment that they might offer, equivalent of course to a corresponding financial risk. Most of the cryptocurrencies that do offer a product or service in return might not be as popular or alluring. However, as many users are going to be forced to invest in such consumptive cryptocurrencies, these virtual assets might also experience a significant gain when the next bulls run comes by.
This bill about crypto tokens also shows the interest that the government has shown towards these digital assets. Many states in the USA have got crypto and blockchain-friendly representatives. Rhode Island has governor Gina Rimando who is considered highly crypto-friendly and even attended blockchain events to promote and attract crypto businesses in the state.
What’s Next for Rhode Island?
Crypto assets have made a lot of name for themselves in recent time. The popularity of these digital assets is so high, the government can no longer ignore their existence. With new crypto related bills and laws being passed in different regions of the world, a new crypto revolution is within our grasp. It will be interesting to see how the world and Rhode Island, in particular, react to the new legislation.