SB195, a very controversial bill created by the lawmaker of the U. S. state of Nevada, has just been dropped. The local lawmakers failed to move the law forward the bill, which can be considered a victory for the crypto holders of the state.
This bill intended to implement two laws, the ULC’s Uniform Regulation for Virtual Currency Business Act (URVCBA) and the Uniform Supplemental Commercial Law for the URVCBA. Ever since the bill was first started, the local crypto community stood fiercely against it and have been effective in convincing the lawmakers to simply drop the idea of using this law at all.
According to the people who are against this law, it affects the rights of the people who hold virtual currencies in a very negative way. The ULC model has the goal of extending the Uniform Commercial Code to the cryptocurrency and blockchain industry as well, which would replace several state laws.
ULC Regulation Is Against Cryptos
The reaction of the local community was fierce as soon as the law appeared back in February 2019. Wendy Stolyarov, the director of government affairs at a local blockchain company called Filament, was one of the first to send letters to the government in opposition to the laws.
According to the letter he sent out in March 2019, even though their business do not rely on cryptos directly, the company was afraid that it could be classified as a money transmitter because they used the blockchain technology by following this new law.
Filament is focused on creating hardware wallet technology that enables machines to make autonomous transactions between each other. This company would need to receive a money transmitter license in this new context.
Another issue that could stem from this new regulation is that crypto and blockchain companies could see their tokens facing super-negotiability protection, which gives the buyers coverage from “unknown encumbrances”. However, some people in the industry have argued that this would only be extended to third parties negotiating tokens, not direct owners like crypto holders.
The law was so criticized that the ULC has decided to halt the law for the moment, which was considered a major victory for the local crypto industry. The ULC has promised to make more studies on the area and to determine how crypto companies could be negatively affected by the law before trying to pass the bill again.
Some other states in the country, such as Wyoming or Missouri, are currently rejecting the ULC model in favor of some more protective laws while others seem to be more interested in it. This will be an ongoing battle, that’s a certainty right now.