Senate Bill S9410

2021-2022 Legislative Session

Requires certain disclosures in advertisements involving virtual tokens

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee


  • 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-S9410 (ACTIVE) - Details

See Assembly Version of this Bill:
A9029
Current Committee:
Senate Banks
Law Section:
Financial Services Law
Laws Affected:
Amd §104, add §410, Fin Serv L
Versions Introduced in 2023-2024 Legislative Session:
S360, A938

2021-S9410 (ACTIVE) - Summary

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

2021-S9410 (ACTIVE) - Sponsor Memo

2021-S9410 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9410
 
                             I N  S E N A T E
 
                               May 25, 2022
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 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:
   §  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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