SB 213: Blockchain Technology Task Force

This bill passed the Senate and House unanimously. 

Blockchain technology has significant promise for increasing efficiency and security in businesses process. It also shows equal promise for use cases in government.

To that end, Senator Dan Hemmert has introduced Senate Bill 213. This bill first creates a legal definition of blockchain technology, and clarifies that the exchange of blockchain tokens—the unit of exchanged used by these systems—does not constitute money transmission for purposes of state regulations that typically require a money transmitter’s license.

The bill also creates the “Blockchain Pilot Project Evaluation Task Force” which will be tasked with

• reviewing the potential applications of blockchain technology to government services;
• reviewing current uses of blockchain technology by governments in other states or countries;
• recommending a pilot project for blockchain technology in Utah at a state or municipal level; and
• reviewing commercial applications of blockchain technology for future economic development in the state.

Those on the task force include:

• one member of the Senate appointed by the president of the Senate;
• one member of the House of Representatives appointed by the speaker of the House of Representatives;
• the executive director of the Department of Technology Services or the executive director’s designee;
• the executive director of the Utah Department of Financial Institutions or the executive director’s designee;
• the director of the Utah Division of Securities or the director’s designee;
• an individual who represents the Office of the Attorney General; and
• six members from the private business and technology community who are familiar with blockchain technology.

Utah claims to be a pro-business, free market state and for that reason should fully embrace potentially beneficial applications of this emerging technology.