STAND. COM. REP. NO. 1066

Honolulu, Hawaii

RE: S.B. No. 945

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 945, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE DIGITAL CURRENCY LICENSURE,"

begs leave to report as follows:

The purpose and intent of this measure is to regulate digital currency companies that do business in the State.

Your Committee received written comments in support of this measure from the Department of Commerce and Consumer Affairs, Hawaii Technology Development Corporation, and one individual.

Your Committee received written comments on this measure from the Grassroot Institute of Hawaii.

Your Committee finds that while digital currency has grown in popularity and acceptance locally, nationwide, and globally, there is a lack of regulation of the industry. The new regulatory and licensing framework for digital currency companies, as proposed by this measure, may provide appropriate protection for Hawaii consumers while allowing digital currency to flourish.

Your Committee has amended this measure by:

(1) Correcting references to certain federal laws;

(2) Clarifying the different ranges of transactions subject to quarterly assessments;

(3) Correcting certain internal statutory cross-references;

(4) Changing the appropriation for the hiring of three full‑time examiners to an unspecified amount; and

(5) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 945, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 945, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair