Senate Bill S9275

2021-2022 Legislative Session

Requires certain disclosures in advertisements involving virtual tokens

download bill text pdf

Sponsored By

Archive: Last Bill Status - Stricken


  • 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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2021-S9275 (ACTIVE) - Details

Law Section:
General Business Law
Laws Affected:
Add §350-b-2, Gen Bus L

2021-S9275 (ACTIVE) - Summary

Requires certain disclosures by a developer of virtual tokens in advertisements involving such virtual tokens.

2021-S9275 (ACTIVE) - Sponsor Memo

2021-S9275 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9275
 
                             I N  S E N A T E
 
                               May 12, 2022
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet 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.
              

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