A bill has been proposed in the New Jersey General Assembly to determine whether a digital currency or asset is a security under state law. The bill, introduced by Democratic Assemblyman Herb Conaway, Jr. on November 29, would supplement the New Jersey Uniform Securities Law, as the current version does not mention virtual, digital, or cryptocurrency. It applies only to institutional investors, defined as “a company or organization that invests money on behalf of other people.” Furthermore, the bill states that stablecoins could be identified as virtual currencies by the state’s Bureau of Securities.
In addition to this bill, two other pieces of legislation are pending in New Jersey. The “Virtual Currency and Blockchain Regulation Act” seeks to regulate digital assets for consumers and autonomous decentralized organizations (DAOs). The other bill, the “Digital Asset and Blockchain Technology Act” requires the Department of Treasury to review and approve digital payment platforms for businesses unable to access traditional financial services. This platform would be based on a virtual currency that is pegged to USD and would facilitate audits, compliance, and local tax payments.
Assemblyman Conaway’s office declined to comment on his bill when approached by Cointelegraph. It remains to be seen whether this bill or the two additional pieces of legislation will pass through the Houses of Parliament and be signed by the Governor.