Bill Proposes Creation of Blockchain Task Force & Business Incentives

A new bill has been proposed in the state of Utah that will stop blockchain firms from being classified as money transmitters.

The bill, named Blockchain Technology Act, was first introduced on Feb. 26 by the Republican senator Daniel Hammert, and is up for hearing today, March 4. Also known as Bill 0213, it proposes to exclude blockchain businesses from the state’s Money Transmitter Act. The bill reads:

This bill defines and clarifies terms related to blockchain technology and exempts a person who facilitates the creation, exchange, or sale of certain blockchain technology-related products from Title 7, Chapter 25, of the Money Transmitter Act.

It not only aims to alter the law regarding blockchain firms, but also proposes the creation of a legislative group, called “Blockchain Pilot Project Evaluation Task Force”, that will study the potential of blockchain technology in government services.

The task force will need to recommend a pilot project, that uses blockchain technology, and examine the technology’s commercial application for future economic development. It will have up until Nov. 30 to prepare a report, that includes any proposed legislation.

If the bill is passed, it will take Utah over to the more progressive side of local U.S. regulatory treatment of cryptocurrency issues, similar to the state of Wyoming, which has proposed several blockchain related bills already.