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House File 240 - IntroducedA Bill ForAn Act 1providing for exemptions for virtual currency from
2certain security and money transmission regulations.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 502.102, subsection 28, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. g. It does not include virtual currency.
4 Sec. 2. Section 502.102, Code 2019, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 32. “Virtual currency” means the same as
7defined in section 533C.102.
8 Sec. 3. Section 502.202, Code 2019, is amended by adding the
9following new subsection:
10 NEW SUBSECTION. 25. Virtual currency transactions. A
11transaction using virtual currency, in whole or in part.
12 Sec. 4. Section 502.401, subsection 2, Code 2019, is amended
13by adding the following new paragraph:
14 NEW PARAGRAPH. c. A person that facilitates the exchange of
15virtual currency or that uses virtual currency, in whole or in
16part, to conduct a transaction.
17 Sec. 5. Section 533C.102, Code 2019, is amended by adding
18the following new subsection:
19 NEW SUBSECTION. 28. “Virtual currency” means a digital
20representation of value that can be digitally traded and
21functions as a medium of exchange, a unit of account, or
22a store of value but does not have legal tender status as
23recognized by the United States government.
24 Sec. 6. Section 533C.103, Code 2019, is amended by adding
25the following new subsection:
26 NEW SUBSECTION. 17. A person that facilitates the exchange
27of virtual currency or that uses virtual currency, in whole or
28in part, to conduct a transaction.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill exempts virtual currency from certain regulations
33applicable to securities in Code chapter 502 and money
34transmissions in Code chapter 533C. Code chapter 502, the
35“Iowa Uniform Securities Act” or “Blue Sky Law”, provides
-1-1for the regulation of securities and includes registration
2requirements for securities and broker-dealers, or persons
3engaging in securities transactions in Iowa. Code chapter
4533C, the “Uniform Money Services Act”, requires persons
5engaging in the business of money transmission in Iowa to
6obtain licensure from the Iowa superintendent of banking.
7The bill defines “virtual currency” to mean a digital
8representation of value that can be digitally traded and
9functions as a medium of exchange, a unit of account, or
10a store of value but does not have legal tender status as
11recognized by the federal government.
12The bill specifies that the term “security”, as used in
13Code chapter 502, does not include virtual currency. The bill
14exempts transactions involving virtual currency from security
15registration and filing requirements in Code chapter 502. The
16bill also exempts persons facilitating the exchange of virtual
17currency or using virtual currency to conduct transactions from
18broker-dealer registration requirements in Code chapter 502 and
19money transmission licensure requirements in Code chapter 533C.
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2certain security and money transmission regulations.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 502.102, subsection 28, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. g. It does not include virtual currency.
4 Sec. 2. Section 502.102, Code 2019, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 32. “Virtual currency” means the same as
7defined in section 533C.102.
8 Sec. 3. Section 502.202, Code 2019, is amended by adding the
9following new subsection:
10 NEW SUBSECTION. 25. Virtual currency transactions. A
11transaction using virtual currency, in whole or in part.
12 Sec. 4. Section 502.401, subsection 2, Code 2019, is amended
13by adding the following new paragraph:
14 NEW PARAGRAPH. c. A person that facilitates the exchange of
15virtual currency or that uses virtual currency, in whole or in
16part, to conduct a transaction.
17 Sec. 5. Section 533C.102, Code 2019, is amended by adding
18the following new subsection:
19 NEW SUBSECTION. 28. “Virtual currency” means a digital
20representation of value that can be digitally traded and
21functions as a medium of exchange, a unit of account, or
22a store of value but does not have legal tender status as
23recognized by the United States government.
24 Sec. 6. Section 533C.103, Code 2019, is amended by adding
25the following new subsection:
26 NEW SUBSECTION. 17. A person that facilitates the exchange
27of virtual currency or that uses virtual currency, in whole or
28in part, to conduct a transaction.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill exempts virtual currency from certain regulations
33applicable to securities in Code chapter 502 and money
34transmissions in Code chapter 533C. Code chapter 502, the
35“Iowa Uniform Securities Act” or “Blue Sky Law”, provides
-1-1for the regulation of securities and includes registration
2requirements for securities and broker-dealers, or persons
3engaging in securities transactions in Iowa. Code chapter
4533C, the “Uniform Money Services Act”, requires persons
5engaging in the business of money transmission in Iowa to
6obtain licensure from the Iowa superintendent of banking.
7The bill defines “virtual currency” to mean a digital
8representation of value that can be digitally traded and
9functions as a medium of exchange, a unit of account, or
10a store of value but does not have legal tender status as
11recognized by the federal government.
12The bill specifies that the term “security”, as used in
13Code chapter 502, does not include virtual currency. The bill
14exempts transactions involving virtual currency from security
15registration and filing requirements in Code chapter 502. The
16bill also exempts persons facilitating the exchange of virtual
17currency or using virtual currency to conduct transactions from
18broker-dealer registration requirements in Code chapter 502 and
19money transmission licensure requirements in Code chapter 533C.
-2-gh/rn