Representatives of the crypto and blockchain industries are not happy with a new bill presented in Nevada. They spoke about their discomfort at a committee hearing last week.
The bill that started it all
The bill in question, the SB 195, will introduce a range of uniform standards for the cryptocurrency industry. It would also require businesses related to cryptocurrencies, like exchanges to register with the Department of Business and Industry of the state. Dubbed the Uniform Regulation of Virtual-Currency Businesses Act, the bill is sponsored by Democratic senator James Ohrenschall. The idea is to bring uniformity and standardization in regulations adopted for the digital currency industry.
Ohrenschall attended the Judiciary Committee hearing of the Nevada Senate last Tuesday, pointing out that various iterations of the bill had already been presented in the states of California, Oklahoma, and Hawaii.
Industry insiders don’t like the bill
The crypto industry is not happy with the proposals of the new bill and is protesting the legislation. The Nevada Technology Association (NTA) said that the legislation is premature and blockchain technology is still in very nascent stages. It noted that the bill would create a competitive disadvantage for the state as it tries to regulate the emerging and rapidly evolving market in great detail.
Vice president of government affairs and strategic initiatives at Blockchains LLC, Matt Digesti, said that the ballmakers did not discuss it with any representative from the crypto or blockchain community during the drafting process. Blockchain firm Filament’s director of government affairs, Wendy Stolyarov released a statement, noting that the bill would “unintentionally classify us as a money transmitter because we build hardware wallet technology that enables the machine-to-machine autonomous transaction.”
The CEO of Hosho Group, Yo Sub Kwon, also presented his case, opposing the legislation. Kwon said that the industry does not need additional regulations over the federal and IRS laws that are already in place, noting that the bill would create barriers to entry for new companies. He said that companies like the Hosho Group would fall under the definition of cryptocurrency business even though they are cybersecurity service providers storing, transferring and exchanging virtual currency. He also said that the definition for a crypto business is too broad and every company that wants to deal in cryptos will have to get additional licenses, which could lead to barriers in adoption.
The SB 195 was introduced in the mid-February, and public records show that the committee did not take any action on the bill. It has also not been amended yet.