New York State Assembly

 
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A00938 Summary:

A00938 Actions:

A00938 Committee Votes:

Committee:SCIENCE AND TECHNOLOGY   Chair:Otis      
DATE:05/23/2023AYE/NAY:9/0  Action: Favorable refer to committee Codes        
Otis
Aye
Blumencranz
Aye
Vanel
Aye
Durso
Aye
Burke
Aye
Wallace
Aye
Conrad
Aye
Gibbs
Aye
Bores
Aye

Committee:CODES   Chair:Dinowitz      
DATE:03/19/2024AYE/NAY:21/0  Action: Favorable         
Dinowitz
Aye
Morinello
Aye
Pretlow
Aye
Reilly
Aye
Cook
Aye
Mikulin
Aye
Lavine
Aye
Tannousis
Aye
Weprin
Aye
Curran
Aye
Hevesi
Aye
Angelino
Aye
Seawright
Aye
Flood
Aye
Rosenthal
Aye
Walker
Absent
Vanel
Aye
Cruz
Aye
Carroll
Aye
Simon
Aye
Epstein
Aye
Bores
Aye

A00938 Floor Votes:

A00938 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         938--A
                                                                Cal. No. 364
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 11, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  VANEL,  OTIS,  BLUMENCRANZ  -- read once and
          referred to the Committee on Science and Technology  --  reported  and
          referred  to the Committee on Codes -- recommitted to the Committee on
          Codes in accordance with Assembly Rule 3,  sec.  2  --  reported  from
          committee, advanced to a third reading, amended and ordered reprinted,
          retaining its place on the order of third reading
 
        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:
 
     1    Section  1.  The  financial  services  law  is amended by adding a new
     2  section 410 to read as follows:
     3    § 410. Restrictions concerning advertising.  (a) No person  shall,  in
     4  any  manner,  advertise,  print, display, publish, distribute, or broad-
     5  cast,  or  cause  or  permit  to  be  advertised,  printed,   displayed,
     6  published,  distributed, or broadcasted, any statement or representation
     7  with regard to any virtual token for  consideration  without  disclosing
     8  the  amount  of  consideration,  whether  past or prospective, direct or
     9  indirect, and the nature thereof.
    10    (b) No  person  shall,  in  any  manner,  advertise,  print,  display,
    11  publish,  distribute, or broadcast, or cause or permit to be advertised,
    12  printed, displayed, published, distributed, or broadcasted,  any  state-
    13  ment  or representation with regard to any virtual token or other finan-
    14  cial product or service if such statement or representation is,  in  any
    15  manner, false, misleading or deceptive.
    16    (c) For the purposes of this section and without limiting subdivisions
    17  (a)  and  (b)  of  this  section, a statement or representation shall be
    18  false, misleading and deceptive if it states  or  implies,  directly  or
    19  indirectly,  that  a person is authorized legally to offer or provide in
    20  New York state or to New York state residents a virtual token  or  other
    21  financial product or service, and such person is not so authorized.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01643-03-4
        A. 938--A                           2
 
     1    (d)  For  the purposes of this section, "virtual token" shall mean any
     2  interchangeable or non-interchangeable unit of data that  is  stored  on
     3  any  blockchain  ledger  which  shall include, among other digital units
     4  that the superintendent determines to be virtual  tokens  in  accordance
     5  with  this  definition,  cryptocurrencies,  virtual  currencies, digital
     6  assets and digital tokens, whether fungible  or  non-fungible.  "Virtual
     7  token" shall not be construed to include any of the following:
     8    (A) digital units that:
     9    (i) are used solely within online gaming platforms;
    10    (ii)  have  no  market  or  application  outside of those gaming plat-
    11  forms;
    12    (iii) cannot be converted into, or  redeemed  for,  fiat  currency  or
    13  virtual currency; and
    14    (iv)  may  or  may  not  be redeemable for real-world goods, services,
    15  discounts, or purchases;
    16    (B) digital units  that  can  be  redeemed  for  goods,  services,  or
    17  purchases  as  part  of  a customer affinity or rewards program with the
    18  issuer and/or other designated merchants or can be redeemed for  digital
    19  units  in  another  customer  affinity or rewards program, but cannot be
    20  converted into, or redeemed for, fiat currency or other virtual  curren-
    21  cy; or
    22    (C) digital units used as part of prepaid cards.
    23    § 2. This act shall take effect immediately.