Nevada congress has made a unanimous not to approve the proposed cryptocurrency bill. The controversial regulations proposed by the new bill were considered null and void, as they were created based on the proposed United States Uniform Commission (ULC).
Nevada Congress Drop SB195
The deadline for proposed further action on SB195 law on cryptocurrencies passed on Friday 12th April 2019 on the floor of Nevada Senate. Unfortunately, for the proponents of the bill, the lawmakers decided that no action would be taken and this means that the bill is now invalid. This is good news to cryptocurrency stakeholders in the state who would have been adversely affected by the bill.
One of the objectives of SB195 was to implement Uniform Regulation for Virtual Currency Business Act as well as the Uniform Supplemental Commercial Law for the URVCBA fully. It is important to note that the bill was introduced to the senate in February 2019 and was strongly opposed by lawmakers who support blockchain technology. Stakeholders in the cryptocurrency industry in and outside Nevada State also opposed the proposed bill.
The lawmakers who opposed the ULC model said that the regulations would have a negative impact on ownership of cryptocurrencies or digital assets. They further went ahead to state that the bill was mainly focussed on controlling digital asset activities.
The ULC model was an attempt to extend the Uniform Commercial Code UCC to the blockchain and cryptocurrency industry. If approved, the new laws would have replaced the patchwork of laws with a more unified regulatory paradigm for enterprises operating in the cryptocurrency industry across the United States.
One of the notable persons who opposed the bill is Wendy Stolyarov, the current Director of Government Affairs at Filament. Wendy is a renowned blockchain hardware developer. In his letter that sought to highlight the downsides of the bill stated that even though the company’s business does not solely depend on cryptocurrencies, the company was concerned that the bill would unintentionally classify the company as a money transmitter service provider. This is because it has a blockchain hardware wallet technology that facilitates machine-to-machine autonomous transactions.
In addition to the money transmitter license constrain on blockchain and cryptocurrency companies, the bill also extends super negotiability protection to cryptocurrency tokens. What this protection does is that it offers wide coverage of unknown encumbrances to cryptocurrency traders both buyers and sellers.
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