Uniform Law Commission Sets Date for Debate on Digital Currency Rules

The Uniform Law Commission (ULC) is set to review outstanding issues with its model digital currency regulation at an upcoming annual meeting.

Tasked with considering uniform state legislation for alternative and mobile payment systems, the ULC has been focusing on digital currencies as part of its mandate to create consistency among US state laws for some time now.

As such, the issues, outlined in a recent memohttp://www.uniformlaws.org/shared/docs/regulation%20of%20virtual%20currencies/2017AM_VirtualCurrencies_IssuesMemo.pdf showcase how much work and deliberation may be left before the model regulation is published and made available as a guide to state lawmakers.

Among the issues remaining include the definition of 'permissible investments' startups are allowed to keep on the books, and the definition of the term 'bank'.

Currently, states like Vermont and Illinois have revealed financial regulation that gives virtual currency businesses the ability to use assets they hold for customers as permissible investments, as this is generally seen as less burdensome.

However, in the same way, the ULC is seeking to assist state lawmakers grappling with such questions, in those states and others, providing them an easier way to give clarity to entrepreneurs and investors.

Such issues are likely to be at the fore of the next annual meeting, which will be hosted in California from 14th–20th July.

Microphones image via Shutterstock