Digital or virtual currencies are a medium of exchange but are not regular money.

Unlike dollar bills and coins, cryptocurrencies are not issued or backed by the U.S. government or any other government or central bank. The lack of a physical token to count and hold may confuse some. Rather, Bitcoin and other cryptocurrencies are a form of digital currency used in electronic payment transactions—no coins, paper money or banks are involved; there are zero to minimal transaction fees; transactions are fast and not bound by geography; and, similar to using cash, transactions are anonymous.

Digital currencies are stored in digital wallets, which are software or apps installed by users on their computer or mobile device.

Each digital wallet contains encrypted information, called public and private keys, that is used to send and receive the digital currency. All digital currency transactions are recorded in a virtual public ledger called the “blockchain,” which is maintained by digital currency “miners.” These miners can be anyone, anywhere in the world, who is willing to invest in the specialized computer hardware needed to rapidly process complex computations. Miners are awarded digital currency, like Bitcoin, Ripple, Dogecoin, and Litecoin, in exchange for verifying each transaction and adding it to the blockchain.

Thirteen states have pending legislation in the 2021 legislative session. 

The box allows you to conduct a full text search or type the state name.

 

Cryptocurrency 2021 Legislation

State:

Bill Number:

Bill

Summary:

Alabama

None

 

Alaska

None

 

Arizona

HB 2544

Establishes a  blockchain and cryptocurrency study committee.

Arkansas

SB 150

Amends the Uniform Money Services Act, includes virtual currency.

California

None

 

Colorado

None

 

Connecticut

None

 

Delaware

None

 

District of Columbia

None

 

Florida

None

 

Georgia

None

 

Guam

None

 

Hawaii

None

 

Idaho

None

 

Illinois

None

 

Indiana

SB 188

Repeals the unclaimed property act and replaces it with the revised unclaimed property act. Includes virtual currency.

Iowa

None

 

Kansas

None

 

Kentucky

HB 230

Repeals the unclaimed property act and replaces it with the revised unclaimed property act. Includes virtual currency.

Louisiana

None

 

Maine

None

 

Maryland

None

 

Massachusetts

None

 

Michigan

None

 

Minnesota

None

 

Mississippi

HF 75

Relates to forfeiture; limits vehicles and other property subject to forfeiture; includes cryptocurrency in the definition of money; provides for recovery of property by innocent owners; modifies participation in the federal equitable sharing program; requires reports; and appropriates money.

Missouri

None

 

Montana

None

 

Nebraska

LB 648

Adopts the Transactions in Digital Assets Act.

Nebraska

LB 649

Adopts the Nebraska Financial Innovation Act.

Nevada

SB 39

Authorizes the state treasurer, if he or she makes certain determinations and obtains the approval of the State Board of Finance, to enter into a contract to provide for the acceptance of transfers of digital tokens by certain governmental entities that have been approved by the state treasurer to participate in the contract. The bill defines the term “digital token” to mean a digital representation of U.S. dollars that: (1) is converted to and from U.S. dollars by a digital token payment system; and (2) may only be transferred, stored or traded electronically.

Nevada

SB 71

Relates to unclaimed property; revises provisions of the Uniform Unclaimed Property Act. Includes virtual currency.

New Hampshire

None

 

New Jersey

AB 1392

Regulates and establishes certain consumer protections concerning digital currencies.

New Jersey

AB 2155
 

This bill, the “Digital Currency Jobs Creation Act,” establishes a regulatory framework for digital currency businesses to operate in New Jersey and creates certain incentives for digital currency businesses to locate in the state.

New Jersey

 

 

New Jersey

AB 2189
SB 3132

Creates the Digital Asset and Blockchain Technology Act.

New Mexico

None

 

New York

AB 3336

Relates to financial technology products and services; establishes a regulatory sandbox program.

North Carolina

None

 

North Dakota

HB 1267

Creates and enacts §6-09-15.10 of the North Dakota Century Code, relating to cryptocurrency custodian services and exchanges; and to provide for a legislative management report.

North Dakota

SB 2048

Relates to the Revised Uniform Unclaimed Property Act; relates to abandoned and unclaimed property; relates to the uniform unclaimed property act; provides for a report; provides a penalty; provides a continuing appropriation. Includes virtual currency.

N. Mariana Islands

Not available

 

Ohio

None

 

Oklahoma

None

 

Oregon

HB 2696

Establishes the Oregon Cash Depository Corporation as independent public corporation and prescribes the corporation’s purposes and powers. Directs the corporation to lease or acquire real property and construct or renovate offices, facilities and business locations throughout the state at which corporation receives, handles, stores and dispenses cash and other valuable property. Establishes the Oregon Cash Depository Corporation Fund in the State Treasury and requires the corporation to deposit all moneys the corporation receives into the fund. Permits the corporation to invest moneys in the fund and a fraction of the corporation’s deposits in accordance with provisions of Act. Subjects the corporation to an annual audit by the secretary of State and requires the corporation to respond to recommendations in the audit report. Requires a study of the corporation’s operations every four years and a report to the Legislative Assembly. Requires the attorney general to defend the corporation and directors, officers and employees of the corporation against a claim or charge brought for actions in performing duties of the corporation.

Pennsylvania

None

 

Puerto Rico

None

 

Rhode Island

None

 

South Carolina

HB 3529

Adds §8-13-1325 so as to provide that candidates and committees may accept digital currency as contributions, that an increase in the value of digital currency being held by a candidate or committee must be reported as interest, and that a candidate or committee shall sell any digital currency and deposit the proceeds from the sale into a campaign account before spending the funds; and amends §8-13-1300, relating to definitions applicable to South Carolina campaign practices, so as to provide that the definition of “contribution” includes digital currency.

South Dakota

None

 

Tenessee

None

 

Texas

None

 

Utah

None

 

Vermont

None

 

Virginia

None

 

U.S. Virgin Islands

None

 

Washington

None

 

West Virginia

None

 

Wisconsin

None

 

Wyoming

HB 43

Relates to digital assets; amends the definition of digital asset; amends provisions related to the nature of digital assets under commercial law; amends security interest provisions relating to digital assets; specifies the application of commercial law to specific types of digital assets; clarifies provisions related to custody of digital assets by banks; establishes that certain digital assets provisions are consumer protection statutes for commercial law purposes.

Wyoming

SF 38

Relates to corporations; provides for the formation and management of decentralized autonomous organizations and provides definition.

     

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Heather Morton is a program principal in Fiscal Affairs. She covers financial services, alcohol production and sales, broadband and telecommunications, and medical malpractice issues for NCSL.

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