Stay informed on the latest developments as New Jersey considers a groundbreaking bill to classify cryptocurrencies sold to institutional investors as securities. Explore the potential impact on the crypto landscape and regulatory dynamics. Follow the journey of Assembly Bill 5747 through legislative scrutiny, providing essential insights into the evolving regulatory framework for digital assets.
Proposed New Jersey Bill Seeks to Designate Crypto Tokens Sold to Institutional Investors as Securities
In the state of New Jersey, a recently introduced bill aims to categorize all cryptocurrencies issued and directly sold to institutional investors as securities, setting forth a distinctive stance compared to the U.S. Securities and Exchange Commission (SEC). While the SEC Chairman, Gary Gensler, has asserted that bitcoin is not a security, he views all other crypto tokens as falling under the securities category.
Sponsored by Representative Herbert Conway, New Jersey Assembly Bill 5747, presented on November 30, seeks to classify virtual currencies sold to institutional investors as securities. The bill specifies that these cryptocurrencies will be subject to the state’s “Uniform Securities Law” and any accompanying regulations from the Bureau of Securities within the Division of Consumer Affairs.
The proposed legislation is currently under the scrutiny of the Assembly Financial Institutions and Insurance Committee, where it will undergo a comprehensive review, including public hearings. Approval by the committee will propel the bill to the full Assembly for a final vote.
At the federal level, the regulatory landscape for cryptocurrencies remains uncertain, lacking definitive guidance on which tokens qualify as securities. Despite Chairman Gensler’s position that most crypto tokens (excluding bitcoin) are securities, the regulatory status of assets like ether (ETH) remains unclear. Notably, a recent court ruling in the SEC v. Ripple case concluded that XRP, when considered independently, does not qualify as a security.
While the SEC has pursued legal action against various crypto firms, including Kraken, Coinbase, Binance, and Bittrex, designating specific tokens such as ADA, AXS, ALGO, ATOM, BNB, BUSD, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, NEXO, OMG, SAND, SOL, TKN, and VGX as securities, the regulatory landscape continues to evolve amid ongoing legal proceedings and deliberations.
Article Source: Bitcoin.com
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