As numerous states settle into their summer recess, the push for digital asset legislation continues unabated, poised to influence numerous congressional and local races this autumn.
In 2024, more than 30 bills affecting digital assets have already been enacted at the state level, marking a significant increase from last year. This bipartisan momentum spans both Republican and Democratic states, highlighting a widespread appetite for clear and consistent crypto regulations ahead of the November elections.
June witnessed particularly vigorous activity in digital asset policy across New England, a region pivotal to upcoming elections and home to diverse bills addressing custody requirements, self-hosted wallets, unclaimed property, crypto mining, and central bank digital currencies (CBDCs).
For instance, New Hampshire, a swing state known for alternating political majorities, has been expanding its regulatory framework to encompass specific digital asset activities. Legislative efforts in June focused on reconciling differences between House and Senate versions of HB 1241, aimed at broadening money-transmitter laws to include “virtual currency” transmissions.
Maine, also potentially pivotal in the 2024 elections, recently updated its Money Transmitter License (MTL) regulations to accommodate digital assets. However, the amendment introduced contentious provisions regarding self-hosted wallets. Governor Janet Mills signed LD 2112 into law, necessitating further scrutiny during implementation.
Massachusetts, Senator Elizabeth Warren’s home state, is advancing its own crypto legislation. House Bill 1641 seeks to modernize fiduciary management of digital assets, aligning with similar legislation nationwide. The bill awaits further study by the Joint Judiciary Committee, reflecting bipartisan legislative interest.
At the local level, Massachusetts is also making strides, with Quincy issuing a groundbreaking $10 million municipal blockchain-based bond in collaboration with J.P. Morgan. Advocates highlight reduced costs, enhanced liquidity, and faster settlement times, underscoring the state’s role in digital asset innovation.
Rhode Island and Louisiana also saw significant developments in June. Governor Dan McKee signed SB 2803 into law in Rhode Island, setting minimum capital requirements and investment limits for currency transmitters, including crypto exchanges. Meanwhile, Louisiana’s Governor Jeff Landry signed HB 488, endorsing Bitcoin mining while prohibiting CBDCs, garnering bipartisan support for its defense of state sovereignty in crypto policy.
In North Carolina, a notable victory for crypto advocates occurred with the passage of HB 690 in the state Senate on June 27. The bill, now awaiting gubernatorial consideration, prohibits CBDC payments and North Carolina’s participation in Federal Reserve CBDC tests.
These state-level legislative activities underscore a growing trend where states shape the regulatory landscape for digital assets, providing clarity and security for businesses and consumers alike. With over 50 million Americans holding crypto assets, these developments are pivotal in states with closely contested elections, where crypto-savvy voters can wield significant influence.
The United States stands at a crucial juncture regarding leadership in Web3 technologies, with voters keen on candidates supporting clear regulatory frameworks and advancement in digital innovation. The activity in June illustrates that policy leadership can emerge from any corner of the country and across political divides.
Peter Herzog, State and Local Government Relations Lead at the Crypto Council for Innovation, emphasizes these developments as indicative of broader trends shaping the future of digital assets in the United States. However, it’s important to note that this article serves as general information and does not constitute legal or investment advice. The views expressed are solely those of the author and do not necessarily reflect those of Cointelegraph.