NY State Assembly Bill 2025-A6515A

Current Bill Status - In Assembly 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 23, 2025	print number 6515a
Apr 23, 2025	amend and recommit to codes
Mar 05, 2025	referred to codes

Bill Amendments

Original

A (Active)

2025-A6515 - Details

See Senate Version of this Bill:: S7824
Current Committee:: Assembly Codes
Law Section:: Penal Law
Laws Affected:: Add Title K Art 191 §§191.00 - 191.20, Pen L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A8820, S8839
2023-2024: A944, S359

2025-A6515 - Summary

Establishes the offenses of virtual token fraud, illegal rug pulls, and private key fraud.

2025-A6515 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6515
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 5, 2025
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Codes
 
 AN ACT to amend the penal  law,  in  relation  to  establishing  certain
   offenses relating to crypto fraud
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Title K of the penal law is amended by adding a new article
 191 to read as follows:
                                ARTICLE 191
                               CRYPTO FRAUD
 
 SECTION 191.00 DEFINITIONS.
         191.05 PENALTIES.
         191.10 VIRTUAL TOKEN FRAUD.
         191.15 ILLEGAL RUG PULLS.
         191.20 PRIVATE KEY FRAUD.
         191.25 FRAUDULENT  FAILURE  TO  DISCLOSE  INTEREST  IN   VIRTUAL
                  TOKENS.
 § 191.00 DEFINITIONS.
   FOR  PURPOSES  OF  THIS  ARTICLE,  THE  FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. "VIRTUAL TOKENS" SHALL MEAN SECURITY TOKENS AND STABLECOINS;
   2. "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:
   (A) SUCH CLASS OF VIRTUAL TOKENS ARE ADVERTISED BY THE DEVELOPER OR AN
 AGENT OF THE DEVELOPER AT THE DEVELOPER'S DIRECTION  TO  BE  BOUGHT  AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09350-01-5
 A. 6515                             2

 
 SOLD  FOR  THE  PURPOSE OF PROFIT, WHETHER OR NOT SUCH PURPOSE IS ADVER-
 TISED AS THE SOLE PURPOSE;
   (B)  SUCH CLASS OF VIRTUAL TOKENS ARE REASONABLY UNDERSTOOD BY MEMBERS
 OF THE PUBLIC TO BE BOUGHT AND SOLD FOR THE PURPOSE OF PROFIT;
   (C) THE VALUE OF SUCH CLASS OF VIRTUAL TOKENS  IS  DETERMINED  BY  THE
 SUPPLY AND DEMAND OF THE VIRTUAL TOKEN; AND
   (D)  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 VIRTUAL TOKEN, OR (III) SUCH CLASS OF VIRTUAL TOKENS  DO  NOT
 EMPLOY  TECHNOLOGY  WHICH  PREVENTS  LARGE FLUCTUATIONS IN ITS PRICE AND
 SUCH TECHNOLOGY FAILS TO PREVENT THE SAME;
   3.   "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
 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:
   (A) SUCH CLASS OF VIRTUAL TOKENS ARE NOT ADVERTISED BY  THE  DEVELOPER
 OR  AN  AGENT OF THE DEVELOPER 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;
   (B)  SUCH  CLASS  OF VIRTUAL TOKENS CANNOT BE REASONABLY UNDERSTOOD BY
 MEMBERS OF THE PUBLIC TO BE BOUGHT AND SOLD FOR THE PURPOSE  OF  PROFIT;
 AND
   (C) THE VALUE OF SUCH CLASS OF VIRTUAL TOKENS IS NOT DETERMINED BY THE
 SUPPLY AND DEMAND OF THE CLASS OF VIRTUAL TOKEN; AND
   (D)  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  AND  SUCH  TECHNOLOGY
 SUCCEEDS IN PREVENTING THE SAME;
   4.  "CLASS"  SHALL  MEAN  A  GROUP OF FUNGIBLE OR NON-FUNGIBLE TOKENS,
 IRRESPECTIVE OF THE AMOUNT CREATED, THAT IS INTENDED BY THE DEVELOPER TO
 BE:
   (A) IN THE CASE OF FUNGIBLE TOKENS, VALUED AND EXCHANGED TOGETHER; OR
   (B) 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-
 ERS' 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 THE  DEVELOPER  IS  REGARDED
 WITHIN VIRTUAL TOKEN COMMUNITIES;
   5.  "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 CLASS OF VIRTUAL TOKENS FROM
 BEING MADE AVAILABLE FOR PURCHASE IN THE STATE OF NEW YORK;
   6. "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;
   7. "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;
 A. 6515                             3
 
   8. "FUNGIBLE TOKEN" SHALL MEAN ANY VIRTUAL TOKEN STORED ON THE  BLOCK-
 CHAIN OTHER THAN NON-FUNGIBLE TOKENS;
   9.  "OWN",  "OWNING"  AND  "OWNERSHIP"  SHALL  MEAN THE MEANS BY WHICH
 POSSESSION OF A DIGITAL ASSET IS NOTED ON THE BLOCKCHAIN OR ANY  DERIVA-
 TIVE MEANS THEREOF;
   10.  "TOKEN" SHALL MEAN THE TECHNICAL STANDARD USED TO CREATE A FUNGI-
 BLE OR NON-FUNGIBLE PIECE OF COMPUTER CODE;
   11. "WALLET" SHALL MEAN A DEVICE, PROGRAM, OR SERVICE WHICH STORES THE
 PUBLIC AND/OR PRIVATE KEYS FOR VIRTUAL TOKEN TRANSACTIONS;
   12. "BURNING" SHALL MEAN ANY METHOD OF SOMEONE MAKING TOKENS  INACCES-
 SIBLE TO ANY PERSON INCLUDING THEMSELF WITH THE INTENTION OF DOING SO;
   13. "RUG PULL" SHALL MEAN THE ACT OF A DEVELOPER DEVELOPING A CLASS OF
 VIRTUAL TOKENS, OWNING MORE THAN TEN PERCENT OF THE SUPPLY OF SUCH CLASS
 OF VIRTUAL TOKENS, AND SELLING MORE THAN TEN PERCENT OF THE TOTAL SUPPLY
 OF  SUCH CLASS OF VIRTUAL TOKENS WITHIN A FIVE-YEAR PERIOD FROM THE DATE
 OF THE LAST SALE OF THE SAME;
   14. "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; AND
   15. "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.
 § 191.05 PENALTIES.
   ANY  PERSON,  PARTNERSHIP, CORPORATION, COMPANY, TRUST OR ASSOCIATION,
 DEVELOPER, OR ANY AGENT OR EMPLOYEE THEREOF WHO VIOLATES THE  PROVISIONS
 OF  THIS  ARTICLE SHALL BE SUBJECT TO A CIVIL FINE OF NOT MORE THAN FIVE
 MILLION DOLLARS OR IMPRISONED NOT  MORE  THAN  TWENTY  YEARS,  OR  BOTH,
 EXCEPT THAT WHERE SUCH A PERSON IS A PERSON OTHER THAN A NATURAL PERSON,
 A FINE NOT EXCEEDING TWENTY-FIVE MILLION DOLLARS.
 § 191.10 VIRTUAL TOKEN FRAUD.
   A  PERSON,  WHETHER  NATURAL  OR OTHERWISE, IS GUILTY OF VIRTUAL TOKEN
 FRAUD WHEN SUCH PERSON ENGAGES IN DECEPTIVE OR FRAUDULENT PRACTICE  WITH
 THE  INTENT  TO  DECEIVE  ANOTHER  IN  RELATION  TO  THE PURCHASE, SALE,
 EXCHANGE, TRANSFER, OFFERING, STORAGE, DESTRUCTION, OR ANY RELEVANT  ACT
 RELATED THERETO OF VIRTUAL TOKENS.
 § 191.15 ILLEGAL RUG PULLS.
   1. A DEVELOPER, WHETHER NATURAL OR OTHERWISE, IS GUILTY OF ILLEGAL RUG
 PULLS  WHEN  SUCH  DEVELOPER DEVELOPS A CLASS OF VIRTUAL TOKEN AND SELLS
 MORE THAN TEN PERCENT OF SUCH TOKENS WITHIN FIVE YEARS FROM THE DATE  OF
 THE LAST SALE OF SUCH TOKENS.
   2.  THIS SECTION SHALL NOT APPLY TO NON-FUNGIBLE TOKENS WHERE A DEVEL-
 OPER HAS CREATED LESS THAN ONE  HUNDRED  NON-FUNGIBLE  TOKENS  THAT  ARE
 REGARDED  AS  PART OF THE SAME SERIES OR CLASS OF NON-FUNGIBLE TOKENS OR
 WHERE SUCH NON-FUNGIBLE TOKENS REGARDED AS PART OF THE  SAME  SERIES  OR
 CLASS  ARE  VALUED  AT LESS THAN TWENTY THOUSAND DOLLARS AT THE TIME THE
 RUG PULL OCCURS.
 § 191.20 PRIVATE KEY FRAUD.
   1. A PERSON, WHETHER NATURAL OR OTHERWISE, IS GUILTY  OF  PRIVATE  KEY
 FRAUD WHEN SUCH PERSON OBTAINS OR DISCLOSES TO ANOTHER PERSON OR MISUSES
 ANOTHER'S PRIVATE KEY WITHOUT THEIR AFFIRMATIVE CONSENT, PROVIDED HOWEV-
 ER  THAT  WHERE  THE PERSON CREATED THE PRIVATE KEY, SUCH A PERSON SHALL
 ONLY BE PROHIBITED FROM DISCLOSING TO ANOTHER OR  MISUSING  THE  PRIVATE
 KEY WITHOUT THE OWNER OF THE PRIVATE KEY'S AFFIRMATIVE CONSENT.
   2.  CONSENT  IS  DEEMED  AFFIRMATIVE  ONLY  WHERE  IT IS OBTAINED BY A
 REQUEST INDEPENDENT FROM ANY OTHER REQUEST OR  INFORMATION  PROVIDED  TO
 A. 6515                             4
 
 ANOTHER,  IT  IS  CONSPICUOUS,  AND  IT INFORMS THE PERSON OF THE CONSE-
 QUENCES ASSOCIATED WITH DISCLOSING THEIR PRIVATE KEY TO ANOTHER.
 § 191.25 FRAUDULENT FAILURE TO DISCLOSE INTEREST IN VIRTUAL TOKENS.
   1.  A  DEVELOPER  OF A CLASS OF VIRTUAL TOKENS IS GUILTY OF FRAUDULENT
 FAILURE TO DISCLOSE INTEREST IN VIRTUAL TOKENS WHEN SUCH DEVELOPER  DOES
 NOT PUBLICLY AND CONSPICUOUSLY DISCLOSE THE NUMBER OF TOKENS THEY OWN IN
 SUCH  CLASS OF VIRTUAL TOKENS THEY DEVELOPED ON THE LANDING PAGE OF SUCH
 DEVELOPER'S PRIMARY WEBSITE.
   2. FOR THE PURPOSES OF THIS SECTION,  THE  TERM  DEVELOPER  SHALL  NOT
 INCLUDE A PERSON WHETHER NATURAL OR OTHERWISE, AND ANY AGENT OR EMPLOYEE
 THEREOF  WHO OWNS MORE THAN TEN PERCENT OF A CLASS OF VIRTUAL TOKENS WHO
 DOES NOT CREATE OR MAINTAIN, IN WHOLE OR IN PART, A VIRTUAL  TOKEN  THAT
 IS OFFERED FOR PURCHASE IN THE STATE OF NEW YORK.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.

2025-A6515A (ACTIVE) - Details

See Senate Version of this Bill:: S7824
Current Committee:: Assembly Codes
Law Section:: Penal Law
Laws Affected:: Add Title K Art 191 §§191.00 - 191.20, Pen L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A8820, S8839
2023-2024: A944, S359

2025-A6515A (ACTIVE) - Summary

Establishes the offenses of virtual token fraud, illegal rug pulls, and private key fraud.

2025-A6515A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6515--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 5, 2025
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Codes -- committee discharged, bill amended, ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the  penal  law, in relation to establishing certain
   offenses relating to crypto fraud

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Title K of the penal law is amended by adding a new article
 191 to read as follows:
                                ARTICLE 191
                               CRYPTO FRAUD
 
 SECTION 191.00 DEFINITIONS.
         191.05 PENALTIES.
         191.10 VIRTUAL TOKEN FRAUD.
         191.15 ILLEGAL RUG PULLS.
         191.20 PRIVATE KEY FRAUD.
 § 191.00 DEFINITIONS.
   FOR  PURPOSES  OF  THIS  ARTICLE,  THE  FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. "VIRTUAL TOKENS" SHALL MEAN DIGITAL ASSETS THAT EXIST ON  A  BLOCK-
 CHAIN;
   2.  "CLASS"  SHALL  MEAN  A  GROUP OF FUNGIBLE OR NON-FUNGIBLE TOKENS,
 IRRESPECTIVE OF THE AMOUNT CREATED, THAT IS INTENDED BY THE DEVELOPER TO
 BE:
   (A) IN THE CASE OF FUNGIBLE TOKENS, VALUED AND EXCHANGED TOGETHER; OR
   (B) 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-
 ERS' OTHER NON-FUNGIBLE TOKENS BASED ON THE FACT THAT  THE  NON-FUNGIBLE
 TOKENS  WERE  CREATED  BY  A  CERTAIN DEVELOPER, TAKING INTO ACCOUNT THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09350-02-5
 A. 6515--A                          2

 
 DEVELOPER'S NOTORIETY, SALE VOLUME, AND HOW THE  DEVELOPER  IS  REGARDED
 WITHIN VIRTUAL TOKEN COMMUNITIES;
   3.  (A)  "DEVELOPER"  SHALL  MEAN  ANY PERSON OR ENTITY THAT EXERCISES
 SIGNIFICANT INFLUENCE OR CONTROL OVER THE CREATION, DESIGN,  IMPLEMENTA-
 TION, OR CORE FUNCTIONALITY OF A VIRTUAL TOKEN THROUGH:
   (I)  CREATING  OR  SUBSTANTIALLY  CONTRIBUTING  TO THE TECHNICAL CODE,
 SMART CONTRACTS, OR PROTOCOLS THAT DEFINE THE TOKEN'S FUNCTIONALITY;
   (II)  HAVING  DECISION-MAKING  AUTHORITY  OVER  SIGNIFICANT  TECHNICAL
 CHANGES OR UPGRADES TO THE TOKEN OR ITS UNDERLYING PROTOCOL; OR
   (III)  BEING  PUBLICLY  IDENTIFIED  AS  THE  FOUNDING TEAM CREATOR, OR
 PRIMARY DEVELOPMENT TEAM FOR THE TOKEN;
   (B) THE TERM "DEVELOPER" SHALL NOT INCLUDE PERSONS WHO:
   (I) MERELY PROVIDE TECHNICAL SERVICES UNDER THE DIRECTION OF OTHERS;
   (II) ARE PASSIVE INVESTORS WHO ACQUIRE TOKENS BUT DO  NOT  PARTICIPATE
 IN DEVELOPMENT; OR
   (III) CONTRIBUTE TO OPEN-SOURCE PROTOCOLS THROUGH NON-CORE DEVELOPMENT
 IN A DECENTRALIZED MANNER;
   4.  "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;
   5.  "FUNGIBLE TOKEN" SHALL MEAN ANY VIRTUAL TOKEN STORED ON THE BLOCK-
 CHAIN OTHER THAN NON-FUNGIBLE TOKENS;
   6. "OWN", "OWNING" AND "OWNERSHIP"  SHALL  MEAN  THE  MEANS  BY  WHICH
 POSSESSION  OF A DIGITAL ASSET IS NOTED ON THE BLOCKCHAIN OR ANY DERIVA-
 TIVE MEANS THEREOF;
   7. "WALLET" SHALL MEAN A DEVICE, PROGRAM, OR SERVICE WHICH STORES  THE
 PUBLIC AND/OR PRIVATE KEYS FOR VIRTUAL TOKEN TRANSACTIONS;
   8. "BURNING" SHALL MEAN ANY METHOD OF SOMEONE MAKING TOKENS INACCESSI-
 BLE TO ANY PERSON INCLUDING THEMSELF WITH THE INTENTION OF DOING SO;
   9.  (A) "RUG PULL" SHALL MEAN THE ACT OF A DEVELOPER WITH RESPECT TO A
 CLASS OF VIRTUAL TOKENS WHERE SUCH DEVELOPER, WITH INTENT TO DEFRAUD:
   (I) CREATES MATERIAL MISREPRESENTATIONS  OR  OMISSIONS  REGARDING  THE
 DEVELOPMENT, UTILITY, OR INTENDED PURPOSE OF THE VIRTUAL TOKENS; AND
   (II)  SUBSEQUENTLY SELLS A SIGNIFICANT PORTION OF THEIR TOKEN HOLDINGS
 OR ABANDONS THE PROJECT WITHOUT DELIVERING THE PROMISED FUNCTIONALITY OR
 UTILITY, CAUSING A SUBSTANTIAL LOSS IN TOKEN VALUE PRIMARILY AS A RESULT
 OF SUCH ACTIONS RATHER THAN GENERAL MARKET CONDITIONS;
   (B) A SALE OF VIRTUAL TOKENS BY A DEVELOPER SHALL NOT CONSTITUTE A RUG
 PULL WHERE THE DEVELOPER:
   (I) SELLS THEIR TOKEN HOLDINGS PURSUANT TO A TOKEN SALES PLAN THAT  IS
 DISCLOSED  AT  THE TIME THE CLASS OF VIRTUAL TOKENS IS FIRST MADE AVAIL-
 ABLE TO PERSONS OTHER THAN  DEVELOPERS  THROUGH  A  TRANSPARENT  VESTING
 SCHEDULE OR SIMILAR PUBLIC DECLARATION; OR
   (II)  THE  DEVELOPER'S  TOKEN  SALES OCCUR AT INTERVALS AND IN AMOUNTS
 CONSISTENT WITH  REASONABLE  BUSINESS  OPERATIONS  AND  ONGOING  PROJECT
 DEVELOPMENT;
   10. "BLOCKCHAIN" SHALL MEAN A CRYPTOGRAPHICALLY SECURED DIGITAL LEDGER
 OR DATABASE THAT:
   (A)  FUNCTIONS  AS  A MATHEMATICALLY VERIFIABLE, CONSENSUS-BASED MECH-
 ANISM FOR MAINTAINING A SINGLE VERSION OF A DIGITAL RECORD ACROSS MULTI-
 PLE COMPUTERS OR NODES; AND
   (B) USES A DISTRIBUTED LEDGER TECHNOLOGY, OR OTHER SIMILAR TECHNOLOGY,
 THAT IS MAINTAINED BY A DECENTRALIZED NETWORK OR PARTICIPANTS WHO  VALI-
 DATE  AND  RECORD  TRANSACTIONS  THROUGH A PREDETERMINED CONSENSUS MECH-
 ANISM; AND
   11. "PRIVATE KEY" SHALL MEAN A CRYPTOGRAPHIC SECRET KEY THAT:
 A. 6515--A                          3
 
   (A) IS MATHEMATICALLY RELATED TO A CORRESPONDING PUBLIC KEY THROUGH AN
 ASYMMETRIC CRYPTOGRAPHIC ALGORITHM;
   (B)  ENABLES  THE CRYPTOGRAPHIC PROOF OF CONTROL OVER SPECIFIC VIRTUAL
 TOKENS RECORDED ON A BLOCKCHAIN;
   (C) WHEN APPLIED TO A DIGITAL SIGNATURE ALGORITHM, DEMONSTRATES OWNER-
 SHIP OR CONTROL OF SPECIFIC VIRTUAL TOKENS OR BLOCKCHAIN ADDRESSES; AND
   (D) IS DESIGNED TO REMAIN SOLELY IN THE POSSESSION OF THE OWNER OF THE
 ASSOCIATED VIRTUAL TOKENS.
 § 191.05 PENALTIES.
   ANY PERSON, PARTNERSHIP, CORPORATION, COMPANY, TRUST  OR  ASSOCIATION,
 DEVELOPER,  OR ANY AGENT OR EMPLOYEE THEREOF WHO VIOLATES THE PROVISIONS
 OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL FINE OF NOT MORE  THAN  FIVE
 MILLION  DOLLARS  OR  IMPRISONED  NOT  MORE  THAN TWENTY YEARS, OR BOTH,
 EXCEPT THAT WHERE SUCH A PERSON IS A PERSON OTHER THAN A NATURAL PERSON,
 A FINE NOT EXCEEDING TWENTY-FIVE MILLION DOLLARS.
 § 191.10 VIRTUAL TOKEN FRAUD.
   A PERSON, WHETHER NATURAL OR OTHERWISE, IS  GUILTY  OF  VIRTUAL  TOKEN
 FRAUD  WHEN SUCH PERSON ENGAGES IN DECEPTIVE OR FRAUDULENT PRACTICE WITH
 THE INTENT TO  DECEIVE  ANOTHER  IN  RELATION  TO  THE  PURCHASE,  SALE,
 EXCHANGE,  TRANSFER, OFFERING, STORAGE, DESTRUCTION, OR ANY RELEVANT ACT
 RELATED THERETO OF VIRTUAL TOKENS.
 § 191.15 ILLEGAL RUG PULLS.
   A DEVELOPER, WHETHER NATURAL OR OTHERWISE, IS GUILTY  OF  ILLEGAL  RUG
 PULLS  WHEN SUCH DEVELOPER COMMITS A RUG PULL, AS DEFINED IN SUBDIVISION
 NINE OF SECTION 191.00 OF THIS ARTICLE.
 § 191.20 PRIVATE KEY FRAUD.
   1. A PERSON, WHETHER NATURAL OR OTHERWISE, IS GUILTY  OF  PRIVATE  KEY
 FRAUD WHEN SUCH PERSON OBTAINS OR DISCLOSES TO ANOTHER PERSON OR MISUSES
 ANOTHER'S PRIVATE KEY WITHOUT THEIR AFFIRMATIVE CONSENT, PROVIDED HOWEV-
 ER  THAT  WHERE  THE PERSON CREATED THE PRIVATE KEY, SUCH A PERSON SHALL
 ONLY BE PROHIBITED FROM DISCLOSING TO ANOTHER OR  MISUSING  THE  PRIVATE
 KEY WITHOUT THE OWNER OF THE PRIVATE KEY'S AFFIRMATIVE CONSENT.
   2.  CONSENT  IS  DEEMED  AFFIRMATIVE  ONLY  WHERE  IT IS OBTAINED BY A
 REQUEST INDEPENDENT FROM ANY OTHER REQUEST OR  INFORMATION  PROVIDED  TO
 ANOTHER,  IT  IS  CONSPICUOUS,  AND  IT INFORMS THE PERSON OF THE CONSE-
 QUENCES ASSOCIATED WITH DISCLOSING THEIR PRIVATE KEY TO ANOTHER.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

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Assembly Bill A6515A

Sponsored By

Current Bill Status - In Assembly Committee

Bill Amendments

2025-A6515 - Details

2025-A6515 - Summary

2025-A6515 - Bill Text download pdf

2025-A6515A (ACTIVE) - Details

2025-A6515A (ACTIVE) - Summary

2025-A6515A (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A6515A

Share this bill

Sponsored By

VANEL

Current Bill Status - In Assembly Committee

Bill Amendments

2025-A6515 - Details

2025-A6515 - Summary

2025-A6515 - Bill Text download pdf

2025-A6515A (ACTIVE) - Details

2025-A6515A (ACTIVE) - Summary

2025-A6515A (ACTIVE) - Bill Text download pdf

Comments