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THE SENATE |
S.B. NO. |
362 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to digital currency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that in 2020, the division of financial institutions of the department of commerce and consumer affairs (DFI) partnered with the Hawaii technology development corporation (HTDC) to study digital currency transactions to determine whether, and the extent to which this activity should be regulated. DFI and HTDC conducted this analysis of digital currency activity through the Digital Currency Innovation Lab (DCIL) research project, which allowed certain digital currency companies to operate under temporary, experimental rules that aimed to foster innovation while providing state regulators with data to inform regulatory policy developments. In a 2024 joint press release, the DFI and HTDC announced the conclusion of the DCIL research project and their findings that "the activities conducted by digital currency companies did not align with the concept of money transmission as outlined in Chapter 489D of the Hawaii Revised Statutes," and that, "[t]he companies will be able to continue transaction activity as an unregulated business."
The legislature acknowledges the determination made by DFI and HTDC that chapter 489D, Hawaii Revised Statutes, is inapplicable to digital currency companies due to their inability to meet statutory requirements relating to permissible investments and to obtain a money transmitters license. However, allowing digital currency companies to operate as unregulated businesses places immeasurable risk onto consumers of the State. Despite the incomplete applicability of chapter 489D, Hawaii Revised Statutes, as it relates to digital currency companies, it is the intent of the legislature that the commissioner of financial institutions apply the existing regulatory framework to digital currency companies until more regulatory guidance and protections are implemented.
Accordingly, the purpose of this Act is to clarify that chapter 489D, Hawaii Revised Statutes, applies to digital currency companies and activity.
SECTION 2. Chapter 489D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§489D- Chapter applicability; digital currency companies and activity; severability. This chapter shall apply to digital currency companies and activity; provided that if any provision of this chapter, or the application thereof to digital currency companies or activity, is held invalid, the invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable when applied to digital currency companies and activity."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Digital Currency; Companies; Activity; Money Transmitters Modernization Act; Applicability
Description:
Clarifies that chapter 489D, HRS, relating to the Money Transmitters Modernization Act, applies to digital currency companies and activity.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.