| Title | AN ACT relating to digital assets. |
|---|---|
| Bill Documents | Original |
| Sponsors | B. Smith |
| Summary of Original Version | Establish KRS Chapter 355A and create new sections thereof to define and establish property classifications for digital assets; supplement and modify provisions of the Uniform Commercial Code, KRS Chapter 355, relating to the classification, perfection, and priority of digital assets; allow debtors located in Kentucky to file a financial statement with the Secretary of State to perfect a security interest in a digital asset; establish when a transferee takes a digital asset free of any security interest perfected by filing; for purposes of Article 9 of KRS Chapter 355, establish when digital assets are located in Kentucky; classify open blockchain tokens with certain characteristics as intangible personal property; require developers and sellers of certain open blockchain tokens to file a notice of intent with the Secretary of State, and pay a filing fee, prior to sale in this state; require the Secretary of State to promulgate forms and make the forms accessible to filers; require facilitators of certain open blockchain tokens in the resale market to comply with certain requirements; establish penalties for violation of the section; provide that the Secretary of State may make referrals to law enforcement agencies; provide that section may be cited as the Kentucky Utility Token Act; create a new section of Subtitle 2 of KRS Chapter 286 to permit certain Kentucky financial institutions to elect to provide custodial services of customer currency and digital assets in accordance with the provisions of the section; establish internal control and customer contracting requirements for providing custodial services under the section; provide that digital assets held in custody under the section are not depository liabilities or assets of the financial institution; require the commissioner of financial institutions to establish a supervision fee; create a new section of Article 1 of KRS Chapter 355 to conform; amend KRS 369.103 to include transactions involving digital assets; provide that the Secretary of State and the commissioner of financial institutions shall promulgate administrative regulations to implement the Act on or before October 1, 2022; EFFECTIVE, in part, October 1, 2022. |
| Index Headings |
Effective Dates, Delayed - Classification and treatment of digital assets, October 1, 2022 Fees - Commissioner, Department of Financial Institutions, custody of digital assets, supervision fee Fees - Secretary of State, notice of intent, sale of open blockchain tokens, filing fee Property - Digital assets, classification and treatment Uniform Laws - Uniform Commercial Code, digital assets, classification and treatment Banks and Financial Institutions - Kentucky financial institutions, custody of digital assets Short Titles and Popular Names - Kentucky Utility Token Act Technology - Digital assets, classification and treatment |
| 11/05/21 | Prefiled by the sponsor(s). |
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Last updated: 12/21/2021 12:15 PM (EST)
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