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S 5473

Requires certain disclosures in advertisements involving virtual tokens

2025 Regular Session Introduced by Leroy Comrie

Summary of S 5473: Requires certain disclosures in advertisements involving virtual tokens OverviewThis bill, introduced on February 21, 2025, would require certain disclosures to

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Bill Summary · S 5473

Summary of S 5473: Requires certain disclosures in advertisements involving virtual tokens

Overview

This bill, introduced on February 21, 2025, would require certain disclosures to be included in any advertisement or public statement involving the promotion or sale of virtual tokens. The bill aims to improve transparency and consumer protection around the marketing of virtual token products.

Key Provisions

  • Disclosure Requirements: Advertisers would be required to clearly and conspicuously disclose the following information in any advertisement or public statement promoting virtual tokens:

    • The name and contact information of the entity offering the virtual tokens
    • A statement that the virtual tokens are not legal tender and are not backed by the full faith and credit of any government
    • A description of any rights or lack of rights associated with owning the virtual tokens
    • A statement that the virtual tokens may be subject to extreme price volatility

  • Enforcement: The bill would grant the Federal Trade Commission (FTC) authority to enforce these disclosure requirements. Violations could result in civil penalties of up to $43,792 per infraction.

  • Definitions: The bill defines "virtual token" as any digital unit that is used as a medium of exchange, unit of account, or store of value, and is not recognized as legal tender by the United States government.

Potential Impact

  • Consumer Protection: The mandatory disclosures aim to provide consumers with clear information about the risks and limitations of virtual token products, helping them make more informed purchasing decisions.

  • Oversight of Virtual Token Advertising: The FTC enforcement mechanism gives the government more tools to monitor and penalize deceptive or misleading marketing practices in the virtual token industry.

  • Scope: The broad definition of "virtual token" means the disclosure requirements would apply to a wide range of cryptocurrency, blockchain, and other digital asset products and services.

Procedural Details

  • This bill was referred to the Senate Committee on Rules after its introduction.
  • It is related to several prior-session bills (S 9410, A 9029, S 360) that addressed similar issues around virtual token regulations.
  • The companion bill A 391 has also been introduced in the House of Representatives.

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

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