Legislators in Nevada have failed to come up with a controversial law on cryptocurrency regulations based on the flawed regulatory model of the US Uniform Law Commission (ULC).
Congress in Nevada does not take action on SB195
The deadline for further action on SB195 in the Nevada Senate passed on Friday (12 April 2019). Since no action is taken, the bill is practically dead in the water and represents a victory for the cryptocurrency actors in the state.
Great work from Nevada Bitcoiners @uniformlaws angry URVCBA attack on individual property rights and currency sovereignty.
– Trace Mayer (@TraceMayer) April 16, 2019
SB 195 wanted to implement the unified ULC regulation for the virtual currency business (URVCBA) and the single complementary commercial law for the URVCBA.
The bill, introduced in February 2019, met with strong opposition from crypto and blockchain actors both inside and outside the state.
Opponents of the ULC cryptocurrency model say the laws are having a negative impact on virtual currency ownership. Critics say instead that URVCBA is more focused on controlling cryptocurrency activity.
The ULC model is an attempt to extend the UCC (Uniform Commercial Code) to the crypto and blockchain industries. The goal is also to replace the patchwork of state laws with a more uniform regulatory paradigm for companies operating in the US in the US.
The ULC regulatory paradigm is an anathema to the cryptocurrency
Wendy Stolyarov, director of government affairs at Filament, a hardware developer for block chains, wrote in March 2019 a protest against the law. An excerpt of the letter is:
While our company does not rely on cryptocurrency, we fear that SB195 might inadvertently rank us as a money sender, as we develop hardware wallet technology that allows for an autonomous machine-to-machine transaction.
In addition to introducing a payload licensing for crypto and blockchain companies, the URVCBA also provides crypto currency tokens for super-negotiation protection. This protection provides crypto buyers with protection against all unknown charges.
Andrea Tinianow, a UCC lawyer in a Forbes An article published in March highlighted that the ULC code only applies to the negotiability of assets held under a registered third party custodian bank. Most token holders now own cryptocurrencies.
In response to this criticism, the ULC issued a statement at the end of March 2019 calling on states to end all legislative procedures with their URVCBA regulatory model. The ULC also said that it would conduct further studies to create a better UCC framework for cryptocurrency and blockchain technology.
With states such as Missouri and Wyoming rejecting the ULC model in favor of more protective laws, other states may also be wary of losing their competitive edge by taking over the flawed URVCBA.
Should Nevada lawmakers follow Wyoming-style crypto-currency regulations or wait for a more crypto-friendly ULC policy? Tell us what you think in the comments below.
Pictures via Twitter (@TraceMayer), Shutterstock
The post of Nevada Lawmaker's Scrap Flawed Cryptocurrency Bill first appeared on Bitcoinist.com.
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