Lawmakers from the U.S. state of Rhode Island are looking to exempt blockchain tokens from securities laws for some use cases.
Five Democratic and Republican senators collectively filed home bill 5595 on Wednesday, proposing that the Rhode Island Uniform Securities Act should be amended to say that programmers or sellers of”open blockchain tokens” aren’t deemed as issuers of securities and therefore are exempt from the act.
The exemption, however, ought to be given under specific conditions, the lawmakers said. First, the point of a token ought to be to get a”consumptive purpose” and”only be exchangeable for, or supplied for the receipt of, goods, services or content, including rights of access to goods, services or content.”
Secondly, sellers or developers of a token shouldn’t sell it to the first buyer as a financial investment.
Further, the proposed legislation states that people who facilitate the exchange of open blockchain tokens shouldn’t be treated as brokers-dealers or people who deal in securities, provided they”electronically file a notice of intent with the secretary of state” in advance.
The bill defines open blockchain token as a digital unit that’s created, recorded in a digital ledger, and is”capable of being traded or moved between persons with no intermediary or custodian of significance.”
Within Colorado, a similar bill was passed by state senators on Wednesday and is currently awaiting a touch from the state governor before it becomes law.
Senate bill 23 — dubbed the”Colorado Digital Token Act” — was registered last month, suggesting that digital tokens with a”primarily consumptive” purpose ought to be exempted from securities legislation provided they aren’t promoted for”speculative or investment” purposes.