In order to regulate cryptocurrency and blockchain technology, a bill was introduced in Nevada State on March 12. According to the bill which was tabled during the Senate session regarding the judiciary hearing, the state is mulling to come up with a regulatory framework which will help to regulate the crypto industry and its allied technologies. However, the various representatives of the crypto industry have voiced their concerns about some of the provisions of the bill which they find quite oppressing in nature.
According to the bill, SB 195, cryptocurrencies will be regulated by a number of uniform standards and all the businesses related to the digital assets have to be registered with the Department of Business and Industry of the State. The new act called Uniform Regulation of Virtual-Currency Business Act was sponsored by James Ohrenschall, a Democratic Senator and the bill proposed has been the initiative of the law commission of the country. The primary objective of the bill is to come up with a uniform regulatory framework that can be applied to all the crypto businesses. Ohrenschall further said that similar iterations of the bill were introduced in California, Oklahoma, and Hawaii.
The reaction from the crypto representatives about the bill is not very enthusiastic. Voicing its concerns, Nevada Technology Association (NTA) argued that as the blockchain technology is still in the nascent stage of development, this particular bill put Nevada in a disadvantageous position vis-a-vis competitors operating at other places. The association also protested that the bill was premature and many of its provisions will curtail the growth of blockchain technology. Controlling the evolving technology to such a great extent is going to do more harm for the technology and its growth rather than bringing any good to the overall scenario.
Lack of Negotiations
It has also been revealed that no stakeholders from the blockchain or cryptocurrency fields have been consulted during the drafting process of the bill, a point which does not paint a very rosy picture for the government. Lamenting the fact that officials didn’t hold any kind of consultation with the stakeholders, vice president of strategic initiatives and government affairs at the Blockchains LLC, Matt Digesti said that the stakeholders related to blockchain technology and cryptocurrency should be consulted by the government. Wendy Stolyarov who is director of government affairs at Filament complained that this bill would inadvertently classify their company as a money transmitter as they are involved in building hardware for the autonomous transactions between machines.
Not a Final Draft
According to the information available in the public domain, this particular bill is still in the evolving stage and is expected to undergo many changes and amendments before it reaches its final draft. Recently, we have witnessed some of the counties in Nevada making use of the blockchain technology to issue the marriage licenses to the people. This new trend is catching up with the masses; however, the acceptance of these licenses varies across the different government departments.