New Jersey Considers Bill to Classify Virtual Currencies as Securities for Institutional Investors

A bill introduced by Democratic Assemblyman Herb Conaway, Jr. in New Jersey proposes that all virtual currencies issued and sold to institutional investors be considered securities under state law. The bill would only apply to transactions governed by New Jersey law and would not impact the federal Securities and Exchange Commission. Two other bills are pending in New Jersey that affect crypto, including the "Virtual Currency and Blockchain Regulation Act" which recently passed both houses of the New Jersey legislature and is awaiting action by the governor. The "Digital Asset and Blockchain Technology Act" would require the state Department of Treasury to review and approve a digital payment platform for state-approved businesses.