New Jersey Bill Proposes Stricter Classification of Cryptocurrencies as Securities
New Jersey Assembly Bill 5747, introduced by Representative Herbert Conway on Nov. 30, aims to categorize all cryptocurrencies issued and sold directly to institutional investors as securities.
The bill proposes that virtual currencies falling under this criterion will be subject to the state’s “Uniform Securities Law” and relevant regulations from the Bureau of Securities in the Division of Consumer Affairs. The Assembly Financial Institutions and Insurance Committee will review the bill, conduct public hearings, and, if approved, send it to the full Assembly for a vote.
While the regulatory status of cryptocurrencies at the federal level remains unclear, SEC Chairman Gary Gensler has consistently regarded most crypto tokens (excluding bitcoin) as securities. Notably, a recent court ruling in the SEC v. Ripple case concluded that XRP, as a standalone asset, is not a security. Despite ongoing legal developments, the SEC has identified several crypto tokens, including ADA, AXS, BNB, and SOL, as securities in lawsuits against various crypto firms.
Clever Robot News Desk 7th December 2023
