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LD 1197

An Act To Update The Maine Money Transmission Modernization Act By Removing Provisions Of Law Regarding Unhosted Wallets

132nd Legislature (2025-2026) Introduced by Joe Baldacci and 2 co-sponsors

Bill would have removed Maine's unhosted cryptocurrency wallet regulations to reduce state-level crypto restrictions and financial surveillance concerns.

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
#electronicfundtransfers #financialpractices #moneytransmissionact
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Bill Summary · LD 1197

Legislative bill overview

LD 1197 would have removed provisions from Maine's Money Transmission Modernization Act that regulate unhosted wallets (cryptocurrency wallets controlled directly by individuals rather than through financial institutions). The bill aimed to eliminate state-level restrictions on these self-custodied digital asset holdings that were enacted in previous legislation.

Why is this important

Unhosted wallet regulations affect how Maine residents can legally hold and transfer cryptocurrency independently. The removal would align Maine's approach with states taking less restrictive stances on self-custody, potentially making the state more competitive for crypto-related businesses while also addressing privacy and financial autonomy concerns raised by cryptocurrency advocates.

Potential points of contention

  • Financial crime prevention vs. privacy: Regulators argue unhosted wallet tracking helps prevent money laundering and terrorism financing, while supporters contend restrictions infringe on legitimate financial privacy rights
  • Competitive positioning: Some view restrictions as economically burdensome compared to other states, while others see regulation as necessary consumer protection
  • Clarity and enforcement: The practical enforceability of unhosted wallet restrictions remains unclear, raising questions about whether regulations are effective or merely create compliance burden

Compiled from official sources — confirm details with the bill’s official record.

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