Bill
LC 308
Modernize and tighten state crypto laws, licensing exchanges and custodians, AML/CFT, custody, and consumer protections, affecting crypto firms, banks, and users; draft died.
Overview
- Bill Number: LC 308
- Title: Generally revise cryptocurrency laws
- Status: Draft, later categorized as Died in Process
- Introduced: September 24, 2024
- Classification: bill
- Subject areas: Credit Transactions; Financial Institutions; Information Technology; Communications
Status and timeline
- 2024-09-24: Drafter Assigned
- 2025-01-02: Draft On Hold
- 2025-05-22: Draft Died in Process
- Implication: The draft text did not advance to enactment. As a result, no new law was enacted under LC 308. The draft may inform future legislative work in cryptocurrency regulation.
Purpose and intent (based on title and subject)
- Broad aim: To generally revise the state’s cryptocurrency laws, likely updating, clarifying, or harmonizing regulations governing crypto-activities within the state.
- Potential objectives (typical for such bills): modernize definitions related to digital assets, clarify licensing or registration for crypto-asset businesses, align criminal/consumer protections, strengthen anti-money-laundering and countering the financing of terrorism (AML/CFT) requirements, address custody and security standards, and clarify interactions with financial institutions and information-technology/communications frameworks.
Key provisions and changes (note on availability)
- The exact text of LC 308 is not provided here. As such, specific provisions cannot be quoted. Bills titled “Generally revise cryptocurrency laws” typically address:
- Definitions: digital assets, tokens, crypto-exchanges, custodians, and related terms.
- Regulatory regime: licensing/registration of crypto businesses, permissible activities, and supervisory authority.
- Consumer protections: disclosures, complaint processes, and safe handling of customer funds.
- AML/CFT requirements: customer due diligence, recordkeeping, and reporting obligations.
- Custody and security: standards for custodial wallets and safeguarding digital assets.
- Tax and accounting implications: treatment of crypto transactions for state tax purposes.
- Enforcement: penalties, remedies, and enforcement mechanisms.
- Interaction with financial institutions: how banks and other lenders interact with crypto businesses; potential exemptions or requirements for financial service providers.
- IT and communications alignment: data privacy, cybersecurity standards, and information-sharing provisions.
Who would be affected
- Crypto-asset businesses (exchanges, custodians, payment processors) seeking licensing/registration and regulatory compliance.
- Financial institutions interacting with crypto entities or customers involved in digital assets.
- Consumers and businesses engaging in crypto transactions, holdings, or services; potential impacts on disclosures, protections, and dispute processes.
- State regulators and law enforcement, charged with overseeing compliance, enforcement, and enforcement penalties.
- Information technology and communications sectors, given potential cybersecurity and data privacy standards.
Procedural and timeline notes
- As of the last actions, LC 308 remained a draft and did not become law. With the bill categorized as Died in Process, it would require new sponsorship and a fresh draft if revived.
- If reintroduced, typical steps would include committee hearings, amendments, floor consideration, and potential governor action.
Next steps for readers
- To understand the precise provisions, obtain the full draft text of LC 308 from the legislative archive.
- Monitor any reintroduction or amendments for potential shifts in scope or impact.
Compiled from official sources — confirm details with the bill’s official record.
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