SB1236

THE CONTEXT: Blockchain technology is a type of distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth ( A.

WHAT THE BILL DID: Declares the regulation of the imposition of a tax or fee on a person or entity running a node on blockchain technology to be a matter of statewide concern and preempts further regulation by a city, town or county.

WHY IT MATTERED: The practical reason for this bill was to set a clear legal boundary for blockchain technology instead of leaving the conduct unaddressed. It would prohibit a city, town or county from imposing a tax or fee on any person or entity for running a node on blockchain technology in a residence, except for a tax levied on electricity, and would also declares the regulation of the imposition of a tax or fee on a person or entity running a node on blockchain technology to be a matter of statewide concern and not subject to further regulation by a city, town or county, rather than leave the current rule unchanged.