Blockchain Law Is Drafted In Utah Senate
Utah has become another US state that can adopt a regulatory document on blockchain. The consideration of the bill regarding the technology is scheduled for Monday, March 4. Such information is published on LegiSkan, a legislative website.
The Blockchain Technology Act was introduced by Daniel Hemmert, a Republican member of the Utah Senate, in February 2019. The main purpose of the draft law is to exempt blockchain companies from obligations to comply with the rules on funds transfer.
The bill provides clarifications on blockchain technology, defines the terminology, and exempts companies that promote the development, exchange, or sale of certain distributed products, from subordination to clause 25 of Article 7 of the Money Transmitter Act, the document says.
Earlier, the draft law on distributed ledger technology was discussed in the Committee on Transportation, Utilities, and Energy.
Hemmert seeks to solve one more issue. He plans to create a special task force that will monitor the development of the technology, as well as pilot projects. The group will be required to prepare a report with conclusions and recommendations for the state administration on these issues by November 30, 2019.
If the bill passes, Utah will be on a par with Wyoming, which is one of the most loyal states in terms of innovative financial technologies.