The United States State of Montana has acknowledged utility exemptions and exempted them from country regulations by passing a brand new bill this past month. House bill 584, titled”Generally revise laws concerning cryptocurrency,” was signed by the Governor of Montana Steve Bullock on May 8.
Initiated by State Representative Shane Morigeau, the bill had its first reading in February 2019. The Bill has passed 33-15, and will come into force on July 1.
The law defines a usefulness token as an electronic unit that’s made, listed on blockchain, capable of being traded with no third party, also issued to allow owners to get a service or good delivered from the issuer”without vesting the holder without no ownership interest or equity interest in the issuer.”
Based on this invoice, a utility token trade must fulfill numerous prerequisites, with the point of a token being”mostly consumptive,” while utilizing such tokens for speculative or investment purposes is illegal. In this aspect, the legislators clarified that usefulness tokens must be employed to supply or obtain goods, services or articles.
While usefulness tokens are exempt from state regulations legislation, the issuers of these tokens still need to socialize with the securities commissioner, and has to file a notice of intent to market such tokens.
By passing its usefulness token legislation, the State of Montana has joined other crypto-friendly countries, such as Wyoming and Colorado. In January 2019, the State of Wyoming passed a bill recognizing cryptocurrencies as cash. Afterward, the State of Colorado passed cryptocurrency exemptions into its own digital token action, allowing licensing requirements for entities working with electronic tokens.