Parsing State Crypto Enforcement

What’s happening? States are taking enforcement action against bad acting crypto currencies.

Why is this important? Let’s look at the variety of ways state enforcement occurs:

• Attorneys general in MA & NY have issued fines and cease and desist orders
•  Texas State Securities Board issued a cease-and-desist order for fraudulently offering cryptocurrency mining investments
• 30+ states considered cryptocurrency legislation in 2021
• AR and KY enacted laws defining digital currency under the states’ money services or transmission statutes
• IN and ND added coverage for virtual currencies under unclaimed property acts
• NE is the 2nd state to create a special bank-like institution to govern virtual currencies and other digital assets
• WY created a bank like structure for crypto in 2019
• TX passed a law that the purchaser of virtual currency gets the rights to that currency from the previous owner & that brings cryptocurrency under the same state business code that applies to other ordinary transactions

How will this be important? More legislation is forthcoming, bills will be replicated.

Pew Charitable Trusts via Governing | States Crack Down on Growing Cryptocurrency Fraud