Crypto and NFTs are a complex world, making regulation an important but difficult task. New Jersey legislators are looking to take on that challenge with a new bill titled the ‘Digital Asset and Blockchain Technology Act.’ This bill, if passed, could have major implications on NFTs and crypto users in the state.
New Jersey is no stranger to crypto enforcement. Last year, they were one of the first states to put the clamps on the now-defunct CeFi platform, Celsius. Now, they’re looking to establish a “Nationwide Multistate Licensing System” for NFT issuers. This could be an unnecessary layer of regulation for independent creators and collectors in the state.
Crypto users in New Jersey, according to the language in the proposed bill, wouldn’t be able to “engage in a digital asset business activity” without registering for a license. This applies to any activity from custodial services to minting and selling an NFT.
The enforceability of this bill is unclear, especially when it comes to the average person. Crypto communities are used to anonymity and living ‘internet-first,’ making it difficult for regulators to manage. It’s possible that the bill might just set guardrails for corporate entities engaging in the space.
Either way, this bill is sure to be a messy situation as New Jersey takes its first steps toward NFT-specific regulation.
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