The Connecticut House of Representatives passed a bill Thursday afternoon that would introduce new state-level regulations on some cryptocurrency transactions.
House Bill 6752 would give the banking commissioner the power to adopt regulations and rules for businesses using digital assets, including currencies like Bitcoin and stablecoins. The initial bill also included non-fungible tokens (NFTs) but that was removed in an amendment on Thursday.
The stated goal is to introduce a level of consumer protection and ensure the various assets are being treated consistently.
That regulatory power would be broad, according to the Office of Legislative Research bill analysis.
In particular, the bill seeks to add new regulations to cryptocurrency kiosks, ATM-like machines that exchange legal tender for digital currency. These have become increasingly popular in the last few years.
The bill would redefine these kiosks as “money transmissions” and subject kiosk owners to regulations and licensing under the Money Transmission Act. Additionally, new kiosk customers would be allowed to cancel transactions and receive a refund within three days. The original bill set that limit at seven days but was reduced in the amendment.
The bill passed the House of Representatives in a broadly bipartisan vote with 129 representatives voting in favor. Fourteen voted against it.
“This is a good first step,” said Rep. Tom Delnicki (R-South Windsor), arguing in favor of the bill on Thursday. “It’s a good common sense approach to at least getting it on people’s radar screens, making them aware of the risks, and creating a situation where people could conceivably make one wrong transaction and get their money back. And that’s the point of it.”
The bill now heads to the Senate for a vote. If passed and signed by the governor, its provisions would go into effect on October 1st of this year.