HB 1043 Summary

• Exempts developers and sellers of open blockchain tokens from securities regulations if the token has not been marketed as an investment, is exchangeable for goods or services, and is not subject to repurchase agreements.

• Excludes persons facilitating open blockchain token exchanges from broker-dealer requirements if they have a reasonable good-faith belief the token meets exemption criteria and promptly terminate non-conforming exchanges.

• Defines "open blockchain token" as a digital unit created through transaction verification or random selection, recorded in a decentralized and mathematically verified ledger, and tradable without intermediaries.

• Adds "virtual currency" definition as a digital representation of value used as medium of exchange, unit of account, or store of value that is not recognized as legal tender by the U.S. government.

• Excludes persons buying, selling, issuing, or taking custody of virtual currency or receiving it for transmission from money transmission licensing requirements under chapter 13-09.