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Bill

A 391

Requires certain disclosures in advertisements involving virtual tokens

2025 Regular Session Introduced by Steve Otis and 1 co-sponsor

Bill A 391 mandates clear disclosures in virtual token ads, ensuring consumers understand risks and issuer info, enhancing transparency and protection in digital asset investments.

REFERRED TO BANKS
0
WeVote Research Nonpartisan
Bill Summary · A 391

Summary of Bill A 391: Disclosure Requirements for Virtual Token Advertisements

Bill Number: A 391
Title: Requires certain disclosures in advertisements involving virtual tokens
Status: Referred to Banks
Introduced: January 08, 2025
Classification: Bill

Purpose and Intent

Bill A 391 aims to enhance transparency and consumer protection in the rapidly evolving market of virtual tokens, often associated with cryptocurrencies and digital assets. The primary intent of the bill is to mandate specific disclosures in advertisements that promote virtual tokens, ensuring that consumers are well-informed about the risks and characteristics of these financial products.

Key Provisions

The bill includes several important provisions that advertisers must comply with when promoting virtual tokens:

  • Disclosure Requirements: Advertisements must clearly disclose:

    • The nature of the virtual token being advertised.
    • Any associated risks, including volatility and potential loss of value.
    • Information regarding the issuer of the token, including their regulatory status.

  • Standardized Language: The bill encourages the use of standardized language to ensure that disclosures are easily understandable to the average consumer.

  • Enforcement Mechanisms: The bill outlines penalties for non-compliance, which may include fines or other regulatory actions.

Who Would Be Affected

  • Advertisers: Companies and individuals promoting virtual tokens will need to adjust their advertising practices to comply with the new disclosure requirements.

  • Consumers: The bill aims to protect consumers by providing them with essential information, enabling them to make informed decisions regarding investments in virtual tokens.

  • Regulatory Bodies: Agencies tasked with overseeing financial advertising will have increased responsibilities for monitoring compliance with the new regulations.

Legislative Timeline

  • January 08, 2025: Bill A 391 was introduced and referred to the Science and Technology Committee.
  • May 06, 2025: The bill was reported and referred to the Codes Committee.
  • May 13, 2025: The bill was reported out of committee.
  • May 15, 2025: The bill advanced to the third reading and was placed on the calendar.
  • May 19, 2025: The bill passed the Assembly and was delivered to the Senate, where it was referred to the Banks Committee.

Related Bills

  • A 9029: A prior-session bill that may have addressed similar issues.
  • A 938: Another prior-session bill related to virtual tokens.
  • S 5473: A companion bill in the Senate that may align with the objectives of A 391.

Conclusion

Bill A 391 represents a significant step towards regulating the advertisement of virtual tokens, aiming to protect consumers from misleading information and enhance the overall integrity of the digital asset market. As the bill progresses through the legislative process, its implications for advertisers and consumers alike will become clearer.

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

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