NJ S775

Establishes a regulatory framework for virtual currency and blockchain in New Jersey, classifying digital assets into three categories: digital consumer assets (intangible personal property), digital securities, and virtual currency (treated as money)

Requires developers or sellers of open blockchain tokens to file a notice of intent with the Department of Banking and Insurance and pay a $1,000 filing fee before making tokens available for sale

Authorizes New Jersey banks to provide custodial services for digital assets after providing 60 days written notice to the Commissioner, with requirements to comply with federal SEC rules, anti-money laundering laws, and information technology best practices

Creates rules for perfecting security interests in digital assets through "control" agreements, including provisions for private keys and multi-signature arrangements

Exempts virtual currency transactions from the existing Money Transmitters Act (P.L.1998, c.14), while establishing that willful violations by token developers, sellers, or facilitators constitute unlawful practices subject to consumer protection penalties