Rhode Island To Follow In The Footseps Of Wyoming?

By Rishma Banerjee

Cryptocurrency has been seeing an increased acceptance and adoption globally. With that we see the rise in regulations and rules to keep these decentralized digital assets in check. According to reports, after Colorado and Wyoming, Rhode Island becomes the third state in the United States of America to propose a crypto related bills.

The bill that the 5 senators, who are the part of the state lawmaking machinery, have come up with deals with setting up definite directions for the emerging evolutionary virtual currency landscape.

As of February 27, 2019, a bipartisan coalition of five Republican and Democratic senators has proposed a house bill 5595, wherein they are supposed to call out the state’s Uniform Securities Act, about the situation of some cryptocurrency insignias as defences. The legislators want privileges from securities regulations for tokens considered as advantages. They also defined monopoly indications as digital assets, which were declared for a “consumptive purpose.”

The bill goes on further to state that these tokens provide privileges to the owner in order to avail products and services restrained in a blockchain network. An extract from the bill which elaborated on this exclusion indicates that the first buyer of the token is prevented from reselling the token until it is available to use for a consumptive pattern, if the token does not have a consumptive design ready at the time of sale; or the developer or seller demands other feasible anticipations to deter buyers from purchasing the token as a financial speculation. Aside from the tokens, the proposed piece of legislation also incorporates a provision for brokers of tokens considered not as securities.

As per the bill, they will not be defined as dealing protection, while such brokers file a warning with the secretary of state, although there is no universal agreement on whether cryptocurrencies are services or securities. Few members of the U.S. Congress want cryptocurrencies to be eliminated from the boundary of security according to the report by media back from December 2018. Recently, In Colorado, the state lawmakers passed a bill similar to that of being introduced in Rhode Island. Although ICOs are considered as intoxicating by Governers in Colorado in terms of violating its securities ordinances, It continues to be seen what impact the new bill will have on the situation.