In a move that could have major implications for the cryptocurrency market, New Jersey recently introduced a new bill aimed at changing how cryptocurrencies are used in the state.
The bill aims to classify all cryptos issued and sold to institutional investors as securities.
Security secrecy in the new US crypto law
The proposed legislation provides a comprehensive framework for the classification of cryptography, including 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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These classifications are subject to the State Securities Act (1967). Additionally, any rule from the Securities and Exchange Commission's Division of Consumer Affairs.
The bill authorizes the Office to adopt rules and regulations through the Administrative Procedure Act to effectively enforce the provisions of that Act.
However, the bill defines a “digital asset” as a transaction history recorded in a distributed digital ledger stored in a machine-readable format, representing property rights or access rights.
Current State of US Crypto Law
The definition clearly includes virtual currency.
He coined the term “institutional investor” to refer to companies such as banks. Also hedge funds, endowments, private equity firms, pension funds and mutual funds.
Amid continued scrutiny of the U.S. government's handling of crypto regulations, Ethereum co-founder Joseph Lubin expressed optimism about the government's ability to pass appropriate crypto regulations.
“I think with previous technologies like the Internet, the Internet and cryptography, clear heads will prevail. America will see that decentralized protocols, blockchains, cryptocurrencies are consistent with the philosophy of the United States.
Meanwhile, Web3 legal strategist Jose Bencoma likened the current U.S. regulatory climate to “going through a minefield.”
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