This US State Wants To Introduce This Stringent Crypto Law

In a move that could have far-reaching implications for the cryptocurrency market, New Jersey recently introduced a new bill to change how cryptocurrencies are treated.

The bill seeks to classify all virtual currencies issued and sold to institutional investors as securities. This development brings a new layer of regulatory oversight to the rapidly evolving digital asset landscape.

Security Classification Under New US Crypto Law

The proposed legislation provides a comprehensive framework for the classification of crypto, introducing key definitions to guide its implementation.

Under the proposed legislation, virtual currencies issued and sold directly to institutional investors would be classified as securities.

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This classification subjects them to the State’s “Uniform Securities Law (1967).” Furthermore, any regulations promulgated by the Bureau of Securities within the Division of Consumer Affairs.

The bill empowers the Bureau to adopt rules and regulations through the Administrative Procedure Act to effectively implement the provisions of this act.

Notably, the bill defines a “digital asset” as a representation of economic, proprietary, or access rights stored in a machine-readable format with a transaction history recorded in a distributed, digital ledger.

The definition explicitly includes virtual currencies.

It introduces the term “institutional investor,” encompassing entities such as banks. Additionally, hedge funds, endowments, private equity firms, pension funds, and mutual funds.

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