NY State Assembly Bill 2021-A9029A

Archive: Last Bill Status - On Floor Calendar

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 24, 2022	amended on third reading (t) 9029a
May 24, 2022	vote reconsidered - restored to third reading returned to assembly recalled from senate
May 23, 2022	referred to internet and technology delivered to senate passed assembly ordered to third reading rules cal.333 rules report cal.333 reported
May 17, 2022	reported referred to rules
May 10, 2022	reported referred to codes
Jan 21, 2022	referred to science and technology

Bill Amendments

Original

A (Active)

2021-A9029 - Details

See Senate Version of this Bill:: S9410
Law Section:: Financial Services Law
Laws Affected:: Amd §104, add §410, Fin Serv L
Versions Introduced in 2023-2024 Legislative Session:: A938, S360

2021-A9029 - Summary

Requires certain disclosures by a developer of virtual tokens in advertisements involving such virtual tokens; provides restrictions concerning advertising.

2021-A9029 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9029
 
                           I N  A S S E M B L Y
 
                             January 21, 2022
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Science and Technology
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   certain disclosures in advertisements involving virtual tokens
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 350-b-2 to read as follows:
   § 350-B-2. DISCLOSURES REQUIRED IN ADVERTISEMENTS  INVOLVING  SECURITY
 TOKENS.  1.  AS  USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "VIRTUAL TOKENS" SHALL MEAN SECURITY TOKENS AND STABLECOINS;
   (B) "SECURITY TOKENS" SHALL MEAN ANY FORM OF FUNGIBLE AND NON-FUNGIBLE
 COMPUTER CODE BY WHICH ALL SUCH FORMS OF OWNERSHIP OF SAID COMPUTER CODE
 IS DETERMINED THROUGH VERIFICATION OF  TRANSACTIONS  OR  ANY  DERIVATIVE
 METHOD,  AND  THAT  IS  STORED ON A PEER-TO-PEER COMPUTER NETWORK OR ANY
 OTHER SUCH COMPUTERIZED SYSTEM OR THROUGH ANY DERIVATIVE MEANS OF  STOR-
 AGE, AND WHICH CONFORMS TO ONE OF THE FOLLOWING:
   (I)  SUCH  CLASS  OF VIRTUAL TOKENS ARE ADVERTISED BY THE DEVELOPER OR
 ANOTHER AT THE DEVELOPER'S DIRECTION TO  BE  BOUGHT  AND  SOLD  FOR  THE
 PURPOSE OF PROFIT, WHETHER OR NOT SUCH PURPOSE IS ADVERTISED AS THE SOLE
 PURPOSE;
   (II)  SUCH  VIRTUAL  TOKENS CAN BE REASONABLY UNDERSTOOD BY MEMBERS OF
 THE PUBLIC TO BE BOUGHT AND SOLD FOR THE PURPOSE OF PROFIT;
   (III) THE VALUE OF SUCH CLASS OF VIRTUAL TOKENS IS DETERMINED  BY  THE
 SUPPLY AND DEMAND OF THE VIRTUAL TOKEN;
   (IV)  SUCH  CLASS OF VIRTUAL TOKENS: (I) ARE NOT PEGGED TO AN EXTERNAL
 SOURCE, WHETHER OR NOT SUCH EXTERNAL SOURCE IS VOLATILE, (II) ARE PEGGED
 TO ANOTHER CLASS OF VIRTUAL TOKENS, OR SUCH CLASS OF VIRTUAL  TOKENS  DO
 NOT EMPLOY TECHNOLOGY WHICH PREVENTS LARGE FLUCTUATIONS IN ITS PRICE, OR
 SUCH TECHNOLOGY FAILS TO PREVENT THE SAME;
   (C)  "STABLECOIN"  SHALL  MEAN  ANY  FORM OF FUNGIBLE AND NON-FUNGIBLE
 COMPUTER CODE BY WHICH ALL SUCH FORMS OF OWNERSHIP OF SAID COMPUTER CODE
 IS DETERMINED THROUGH VERIFICATION OF  TRANSACTIONS  OR  ANY  DERIVATIVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13980-03-2
 A. 9029                             2
 
 METHOD,  AND  THAT  IS  STORED ON A PEER-TO-PEER COMPUTER NETWORK OR ANY
 OTHER SUCH COMPUTERIZED SYSTEM OR THROUGH ANY DERIVATIVE MEANS OF  STOR-
 AGE, AND WHICH CONFORMS TO ALL OF THE FOLLOWING:
   (I)  SUCH  CLASS OF VIRTUAL TOKENS ARE NOT ADVERTISED BY THE DEVELOPER
 OR ANOTHER AT THE DEVELOPER'S DIRECTION TO BE BOUGHT AND  SOLD  FOR  THE
 PURPOSE OF PROFIT, WHETHER OR NOT SUCH PURPOSE IS ADVERTISED AS THE SOLE
 PURPOSE;
   (II)  SUCH  CLASS OF VIRTUAL TOKENS CANNOT BE REASONABLY UNDERSTOOD BY
 MEMBERS OF THE PUBLIC TO BE BOUGHT AND SOLD FOR THE PURPOSE OF PROFIT;
   (III) THE VALUE OF SUCH CLASS OF VIRTUAL TOKENS IS NOT  DETERMINED  BY
 THE SUPPLY AND DEMAND OF THE CLASS OF VIRTUAL TOKEN; AND
   (IV)  SUCH  CLASS  OF VIRTUAL TOKENS ARE PEGGED TO AN EXTERNAL SOURCE,
 OTHER THAN ANOTHER CLASS OF VIRTUAL TOKENS, WHETHER OR NOT SUCH EXTERNAL
 SOURCE IS VOLATILE, OR SUCH CLASS OF VIRTUAL TOKENS DO EMPLOY TECHNOLOGY
 WHICH PREVENTS LARGE FLUCTUATIONS  IN  ITS  PRICE,  OR  SUCH  TECHNOLOGY
 SUCCEEDS IN PREVENTING THE SAME;
   (D)  "CLASS"  SHALL  MEAN  A GROUP OF FUNGIBLE OR NON-FUNGIBLE TOKENS,
 IRRESPECTIVE OF THE AMOUNT CREATED, THAT IS INTENDED BY THE DEVELOPER TO
 BE:
   (I) IN THE CASE OF FUNGIBLE TOKENS, VALUED AND EXCHANGED TOGETHER; OR
   (II) IN THE CASE OF NON-FUNGIBLE TOKENS, REGARDED AS PART OF THE  SAME
 GROUP  OF DIGITAL OR PHYSICAL ITEMS OR VALUED TOGETHER WITH THE DEVELOP-
 ER'S OTHER NON-FUNGIBLE TOKENS BASED ON THE FACT THAT  THE  NON-FUNGIBLE
 TOKENS  WERE  CREATED  BY  A  CERTAIN DEVELOPER, TAKING INTO ACCOUNT THE
 DEVELOPER'S NOTORIETY, SALE VOLUME, AND HOW HE OR SHE IS REGARDED WITHIN
 VIRTUAL TOKEN COMMUNITIES;
   (E) "DEVELOPER" SHALL MEAN THE PERSON OR PERSONS, WHETHER  NATURAL  OR
 OTHERWISE,  AND ANY AGENT OR EMPLOYEE THEREOF WHO EITHER CREATE IN WHOLE
 OR IN PART, MAINTAIN IN WHOLE OR IN PART, OR OWN MORE THAN  TEN  PERCENT
 OF  A  CLASS  OF VIRTUAL TOKENS UTILIZING ANY TECHNICAL STANDARD AND WHO
 OFFERS THEM FOR PURCHASE IN THE STATE OF NEW YORK OR, WHERE THE SALE  OF
 THEIR  TOKENS  IN  THE STATE OF NEW YORK IS PROHIBITED, SUCH PERSON DOES
 NOT USE REASONABLE EFFORTS TO PREVENT SUCH  VIRTUAL  TOKENS  FROM  BEING
 MADE AVAILABLE FOR PURCHASE IN THE STATE OF NEW YORK;
   (F)  "TECHNICAL STANDARD" SHALL MEAN THE RULES THAT A CLASS OF VIRTUAL
 TOKENS SHALL COMPLY WITH IN ORDER TO USE THE BLOCKCHAIN NETWORK  OR  ANY
 DERIVATIVE MEANS THEREOF;
   (G)  "NON-FUNGIBLE TOKEN" SHALL MEAN A VIRTUAL TOKEN USED TO DENOTE ON
 THE BLOCKCHAIN OWNERSHIP OF ANY DIGITAL OR PHYSICAL ITEM OR ANY  DERIVA-
 TIVE MEANS THEREOF;
   (H) "FUNGIBLE TOKEN" SHALL MEAN ANY VIRTUAL TOKEN STORED ON THE BLOCK-
 CHAIN OTHER THAN NON-FUNGIBLE TOKENS;
   (I) "OWNED" AND "OWNERSHIP" SHALL MEAN THE MEANS BY WHICH OWNERSHIP OF
 A DIGITAL ASSET IS NOTED ON THE BLOCKCHAIN OR ANY DERIVATIVE MEANS THER-
 EOF;
   (J)  "TOKEN" SHALL MEAN THE TECHNICAL STANDARD USED TO CREATE A FUNGI-
 BLE OR NON-FUNGIBLE PIECE OF COMPUTER CODE;
   (K) "WALLET" SHALL MEAN A DEVICE, PROGRAM, OR SERVICE WHICH STORES THE
 PUBLIC AND/OR PRIVATE KEYS FOR VIRTUAL TOKEN TRANSACTIONS;
   (L) "BLOCKCHAIN" SHALL MEAN ANY TYPE OF TECHNOLOGY WHICH  STORES  CODE
 ON  A  DATABASE  OF  WHICH SAID DATABASE REPRESENTS THE RECORD OF TRANS-
 ACTIONS THAT MAKE UP VIRTUAL TOKENS OR ANY DERIVATIVE TECHNOLOGY;
   (M) "PRIVATE KEY" SHALL MEAN THE UNIQUE IDENTIFIER OF A WALLET, OR ANY
 SUBSTANTIALLY SIMILAR ANALOGUE, THAT IS PAIRED WITH A PUBLICLY AVAILABLE
 IDENTIFIER AND ASSOCIATED WITH AN ALGORITHM THAT IS NECESSARY  TO  CARRY
 OUT AN ENCRYPTION OR DECRYPTION REQUIRED TO EXECUTE A TRANSACTION; AND
 A. 9029                             3

   (N)  "ADVERTISEMENT"  SHALL MEAN AND INCLUDE BUT NOT BE LIMITED TO ANY
 PUBLIC NOTICE,  CIRCULAR,  ADVERTISEMENT,  NEWSPAPER,  ARTICLE,  LETTER,
 INVESTMENT  SERVICE  OR  COMMUNICATION  TO  MORE THAN ONE PERSON WHETHER
 DIRECTLY OR INDIRECTLY.
   2.  IT SHALL BE UNLAWFUL FOR ANY PERSON, WHETHER NATURAL OR OTHERWISE,
 OR ANY AGENT OR EMPLOYEE THEREOF TO GIVE PUBLICITY TO, OR CIRCULATE  ANY
 ADVERTISEMENT  WHICH, THOUGH NOT PURPORTING TO OFFER A CLASS OF SECURITY
 TOKENS FOR SALE, DESCRIBES SUCH CLASS OF SECURITY TOKENS THAT IS CREATED
 BY A DEVELOPER SEEKING SUCH  ADVERTISEMENT  FOR  CONSIDERATION,  WHETHER
 DIRECTLY  OR  INDIRECTLY,  WITHOUT FULLY DISCLOSING THE RECEIPT, WHETHER
 PAST OR PROSPECTIVE, OF THE AMOUNT THEREOF.
   3. THE FORM OF DISCLOSURE SHALL BE WRITTEN ON EACH ADVERTISEMENT IN  A
 SUFFICIENTLY  READABLE TYPEFACE OR, WHERE SUCH ADVERTISEMENT IS AUDITORY
 IN NATURE, STATED IN A CLEAR AND UNDERSTANDABLE TONE PRIOR TO THE  AUDI-
 TORY STATEMENT.
   § 2. This act shall take effect immediately.

co-Sponsors

2021-A9029A (ACTIVE) - Details

See Senate Version of this Bill:: S9410
Law Section:: Financial Services Law
Laws Affected:: Amd §104, add §410, Fin Serv L
Versions Introduced in 2023-2024 Legislative Session:: A938, S360

2021-A9029A (ACTIVE) - Summary

Requires certain disclosures by a developer of virtual tokens in advertisements involving such virtual tokens; provides restrictions concerning advertising.

2021-A9029A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9029--A
                                                            R. R. 333
 
                           I N  A S S E M B L Y
 
                             January 21, 2022
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Science and Technology -- reported and referred to the Committee on
   Codes -- reported and referred to the Committee on Rules -- ordered to
   a third reading, passed by  Assembly  and  delivered  to  the  Senate,
   recalled  from  the  Senate,  vote reconsidered, bill amended, ordered
   reprinted, retaining its place on the special order of third reading
 
 AN ACT to amend the financial services law,  in  relation  to  requiring
   certain disclosures in advertisements involving virtual tokens
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (a) of section 104 of  the  financial  services
 law is amended by adding a new paragraph 6 to read as follows:
   (6) "VIRTUAL TOKEN" SHALL MEAN ANY INTERCHANGEABLE OR NON-INTERCHANGE-
 ABLE  UNIT  OF  DATA THAT IS STORED ON ANY BLOCKCHAIN LEDGER WHICH SHALL
 INCLUDE, AMONG OTHER DIGITAL UNITS THAT THE SUPERINTENDENT DETERMINES TO
 BE VIRTUAL TOKENS IN ACCORDANCE WITH THIS DEFINITION,  CRYPTOCURRENCIES,
 VIRTUAL  CURRENCIES, DIGITAL ASSETS AND DIGITAL TOKENS, WHETHER FUNGIBLE
 OR NON-FUNGIBLE. VIRTUAL TOKENS SHALL NOT BE CONSTRUED TO INCLUDE ANY OF
 THE FOLLOWING:
   (A) DIGITAL UNITS THAT: (I) ARE USED SOLELY WITHIN ONLINE GAMING PLAT-
 FORMS; (II) HAVE NO MARKET OR APPLICATION OUTSIDE OF THOSE GAMING  PLAT-
 FORMS; (III) CANNOT BE CONVERTED INTO, OR REDEEMED FOR, FIAT CURRENCY OR
 VIRTUAL  CURRENCY;  AND (IV) MAY OR MAY NOT BE REDEEMABLE FOR REAL-WORLD
 GOODS, SERVICES, DISCOUNTS, OR PURCHASES;
   (B) DIGITAL UNITS  THAT  CAN  BE  REDEEMED  FOR  GOODS,  SERVICES,  OR
 PURCHASES  AS  PART  OF  A CUSTOMER AFFINITY OR REWARDS PROGRAM WITH THE
 ISSUER AND/OR OTHER DESIGNATED MERCHANTS OR CAN BE REDEEMED FOR  DIGITAL
 UNITS  IN  ANOTHER  CUSTOMER  AFFINITY OR REWARDS PROGRAM, BUT CANNOT BE
 CONVERTED INTO, OR REDEEMED FOR, FIAT CURRENCY OR OTHER VIRTUAL  CURREN-
 CY; OR
   (C) DIGITAL UNITS USED AS PART OF PREPAID CARDS.
   § 2. The financial services law is amended by adding a new section 410
 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13980-04-2
 A. 9029--A                          2
 
   §  410.  RESTRICTIONS CONCERNING ADVERTISING.  (A) NO PERSON SHALL, IN
 ANY MANNER, ADVERTISE, PRINT, DISPLAY, PUBLISH,  DISTRIBUTE,  OR  BROAD-
 CAST,   OR  CAUSE  OR  PERMIT  TO  BE  ADVERTISED,  PRINTED,  DISPLAYED,
 PUBLISHED, DISTRIBUTED, OR BROADCASTED, ANY STATEMENT OR  REPRESENTATION
 WITH  REGARD  TO  ANY VIRTUAL TOKEN FOR CONSIDERATION WITHOUT DISCLOSING
 THE AMOUNT OF CONSIDERATION, WHETHER  PAST  OR  PROSPECTIVE,  DIRECT  OR
 INDIRECT, AND THE NATURE THEREOF.
   (B)  NO  PERSON  SHALL,  IN  ANY  MANNER,  ADVERTISE,  PRINT, DISPLAY,
 PUBLISH, DISTRIBUTE, OR BROADCAST, OR CAUSE OR PERMIT TO BE  ADVERTISED,
 PRINTED,  DISPLAYED,  PUBLISHED, DISTRIBUTED, OR BROADCASTED, ANY STATE-
 MENT OR REPRESENTATION WITH REGARD TO ANY VIRTUAL TOKEN OR OTHER  FINAN-
 CIAL  PRODUCT  OR SERVICE IF SUCH STATEMENT OR REPRESENTATION IS, IN ANY
 MANNER, FALSE, MISLEADING OR DECEPTIVE.
   (C) FOR THE PURPOSES OF THIS SECTION AND WITHOUT LIMITING SUBDIVISIONS
 (A) AND (B) OF THIS SECTION, A  STATEMENT  OR  REPRESENTATION  SHALL  BE
 FALSE,  MISLEADING  AND  DECEPTIVE  IF IT STATES OR IMPLIES, DIRECTLY OR
 INDIRECTLY, THAT A PERSON IS AUTHORIZED LEGALLY TO OFFER OR  PROVIDE  IN
 NEW  YORK  STATE OR TO NEW YORK STATE RESIDENTS A VIRTUAL TOKEN OR OTHER
 FINANCIAL PRODUCT OR SERVICE, AND SUCH PERSON IS NOT SO AUTHORIZED.
   § 3. This act shall take effect immediately.

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Assembly Bill A9029A

Sponsored By

Archive: Last Bill Status - On Floor Calendar

Bill Amendments

2021-A9029 - Details

2021-A9029 - Summary

2021-A9029 - Bill Text download pdf

co-Sponsors

2021-A9029A (ACTIVE) - Details

2021-A9029A (ACTIVE) - Summary

2021-A9029A (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A9029A

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Sponsored By

VANEL

Archive: Last Bill Status - On Floor Calendar

Bill Amendments

2021-A9029 - Details

2021-A9029 - Summary

2021-A9029 - Bill Text download pdf

co-Sponsors

Steven Otis

2021-A9029A (ACTIVE) - Details

2021-A9029A (ACTIVE) - Summary

2021-A9029A (ACTIVE) - Bill Text download pdf

Comments