On the 8th of May, governor of Montana Steve Bullock signed house bill 584, tilted “generally revise laws relating `to cryptocurrency,” the new bill recognizes utility Tokens and exempts them from state securities. House bill 584 was initiated by state representative Shane Morigeau and had its first reading in February 2019. House bill 584 has now passed with 33 – 15 and will come into force on the 1st of July.
House bill 584 defines a utility token as a digital unit that is created and recorded on blockchain, this unit is capable of being exchanged without a third party, and issued to enable owners to access a good or service delivered by the issuer ‘without vesting the holder with any ownership interest or equity interest in the issuer.”
House Bill 584 states that a utility token transaction has to meet several requirements, with the purpose of a token being “primarily consumptive,” legislators further explained that Utility tokens should be used to receive or provide goods, services or content, use of Utility tokens for speculative or investment purposes is prohibited.
Though the tokens are exempted from state securities issuers of utility tokens still have to interact with the securities commissioner, issuers must also file a notice of intent to sell.
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