Utah legislators are now considering blockchain treatment in a bill that goes before the state senate on Mar. 4
Following on the heels of a series of landmark bills passed by the state of Wyoming, which is now widely recognized as the first and only U.S. state to provide a comprehensive framework for blockchain technology, Utah is looking to get in on the action.
The bill being proposed today specifically centers on the definition of the technology, thereby providing a basis for potential incentives and special treatment that could be doled out by the state. Known as the “Blockchain Technology Act”, the bill was first presented by Republican Senator Daniel Hemmert on Feb. 25. If passed, the new legislation will exempt blockchain businesses from money transmitter compliance obligations, thereby easing the process of development in the state.
The ultimate goal for Wyoming, Utah and other states that follow suit is promoting an atmosphere of blockchain acceptance. According to one forecast published last November, the market for blockchain in global retail will increase twenty-nine fold over the next five years, giving some indication of the anticipation for the industry. States that can strike a balance now of easy to follow regulation are opening the door for both a flood of new employment and economic generation.
The specifics of the “Blockchain Technology Act”, also classified as Bill 0213, are as follows:
“This bill … defines and clarifies terms related to blockchain technology and exempts a person who facilitates the creation, exchange, or sale of certain blockchain technology-related products from Title 7, Chapter 25, of the Money Transmitter Act”, the text of the bill reads.
State senator Hemmert also intends to create a dedicated task force focused on exploring blockchain, in addition to improving the atmosphere for blockchain firms. As apart of his proposal, the taskforce will administer pilot projects, with the goal of reporting their findings back to the state by the end of the year.
According to the bill,
“On or before November 30, 2019, the task force shall provide a report on the task force’s findings and recommendations, including any proposed legislation.”
Compared to the existing framework in New York–through its convoluted and maligned BitLicense program–alternative locations are beginning to appear as the superior choice for blockchain based firm development. Wyoming legislators, who have already enacted 13 blockchain-enabling laws, are trailblazing the space of enticing developers and companies to operate in their state. Wyoming has become so progressive on the industry of blockchain that it has started referring to itself as the “Delaware of Digital Asset Law”, making a play on Delaware’s leading interest in corporate law.
More and more government regulators and politicians are coming to recognize the potential for blockchain development. While the narrative around the industry years ago may have centered on criminal activity, the conversation is moving towards fostering growth as opposed to stifling innovation. Should Wyoming’s position as the leader in blockchain law prove fortuitous for the state, it won’t be long before the series of legislation becomes popular across the country.