HB2048 Summary

• Amends the definition of "offer to sell" or "offer for sale" in Arizona securities law to clarify that an offer occurs only when acceptance of the offer and payment of consideration would complete the sale.

• Adds definition of "virtual coin" as a digital representation of value that can be digitally traded and functions as a medium of exchange, unit of account, and store of value.

• Defines "virtual coin offering" to include offers for sale of virtual coins that either meet the definition of a security or are elected to be treated as securities by the issuer.

• Exempts virtual coin offerings from securities regulation if the virtual coin has not been marketed as an investment and grants purchasers the right within 90 days to use, contribute to development of, or license use of a blockchain-based platform.

• Modifies fraud provisions in securities transactions to clarify that fraudulent practices apply to contemplated offers to sell or buy securities in addition to actual transactions.