Montana Passes Bill to Exempt Utility Tokens From Securities Laws

Montana

Earlier this week Montana Governor signed the pro crypto bill 584 into law. The new legislation titled “Generally revise laws relating to cryptocurrency” addresses the use of utility tokens and has exempted them from being considered as securities under local rules.

The bill was sponsored by State Representative Shane Morigeau (Democrat) and allows transactions involving utility token “as long as the purpose of the token is primarily consumptive.”

This implies that the issuer cannot put up the token for sales as an investment or speculation, and must also file a notice of intent when selling the tokens with the state’s securities commissioner.

The meaning of “consumptive purpose” for the utility token was defined as being able to “provide or receive goods, services, or content including access to goods, services, or content.” It essentially means that the token should be available within 180 days after the time of sale or transfer, with the buyer being barred from re-selling or transferring the token until the consumption purpose is possible again.

Although these state-level laws will only impact the people of Montana since federal rules supersede the state level laws, the bill still represents a swift move towards clear regulations for crypto and tokens in the U.S. For instance, Wyoming has incredibly passed 13 blockchain-positive laws over the course of the last few years, offering a comprehensive framework for crypto firms in the state.

Similarly, Florida, notorious for one of the harshest crypto regulatory regimes in the U.S., has recently passed a bill to initiate the formation of a task force within the Department of Financial Services and assist in developing a “master plan” for blockchain in the state.

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