Mississippi House Bill HB849

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Securities laws; provide certain exemptions regarding blockchain tokens.

Impact

The implications of HB849 are profound, as it modifies existing Mississippi securities laws to specifically exclude open blockchain tokens from being classified as securities unless specific conditions are met. These conditions ensure that the tokens are not sold as financial investments and must serve a consumptive purpose, such as being exchangeable for goods or services. This change helps to foster a business-friendly environment for blockchain initiatives, potentially attracting businesses and investments related to blockchain technology into the state.

Summary

House Bill 849 aims to create regulations surrounding open blockchain tokens, specifically exempting those who develop, sell, or facilitate the exchange of such tokens from certain state securities and money transmission laws. This is a significant move for Mississippi, as it acknowledges the growing role of blockchain technology and crypto-assets within the financial system. The bill emphasizes the need for a clear regulatory framework to promote innovation while maintaining consumer protection standards, as developers will need to file a notice of intent with the Secretary of State to qualify for these exemptions.

Contention

However, there are notable points of contention surrounding the bill. Critics may argue that by exempting these tokens from standard securities regulations, there might be increased risks for consumers who may lack protections typically afforded in securities transactions. Additionally, the bill's scope raises questions about how other aspects of financial regulation might adapt to the evolving nature of blockchain and cryptocurrency markets. Further discussions may be necessary to reconcile the need for regulatory clarity with adequate consumer protection mechanisms.