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OLR Bill Analysis
sHB 6991
AN ACT CONCERNING DEFINITIONS APPLICABLE TO THE
MONEY TRANSMISSION STATUTES AND SOLICITATIONS AND
ADVERTISEMENTS BY MONEY TRANSMISSION LICENSEES.
SUMMARY
This bill makes several minor changes to the definitions and
advertising restrictions in the state’s Money Transmission Act, which
generally regulates businesses, other than banks, savings and loan
associations, or credit unions, that receive and transmit money.
Under current law, “money transmission” includes, among other
things, engaging in the business of issuing or selling payment
instruments or stored value. The bill specifies that this includes direct
engagement or engaging as an intermediary. It also relatedly changes
the “stored value” definition, which is currently monetary value that is
evidenced by an “electronic record” (i.e. information stored in an
electronic medium and retrievable in perceivable form). The bill
renames the record as “electronic or digital record” and specifies that
monetary value includes a claim against the issuer of monetary value.
Additionally, the bill specifies that the methods of “money
transmission” include using a digital wallet such as in connection with
a consumer payment mobile application. Under the bill, a “digital
wallet” is any electronic or digital functionality that (1) stores account
or payment credentials for a consumer, including in encrypted or
tokenized form, and (2) transmits, routes, or otherwise processes the
account or payment credentials to facilitate a consumer payment
transaction.
The bill also adds a restriction on advertising by money transmission
licensees. It specifically prohibits them from including any statement or
claim in their solicitations or advertisements that funds deposited with
them are eligible for Federal Deposit Insurance Corporation (FDIC) 2025HB-06991-R000194-BA.DOCX
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protections. Existing law already prohibits licensees from including any
statement or claim that is deceptive, false, or misleading. (The FDIC
generally only supervises and insures certain banks and savings
associations, which are exempt from the Money Transmission Act.)
Lastly, the bill makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2025
BACKGROUND
Related Bill
sSB 1338, favorably reported by the Banking Committee, regulates
certain money sharing applications owned or operated by people who
are or must be licensed as a money transmitter.
COMMITTEE ACTION
Banking Committee
Joint Favorable
Yea 12 Nay 0 (03/06/2025)