New Jersey Bill Classifies Crypto Tokens Sold to Institutional Investors as Securities

A bill introduced in New Jersey seeks to classify all cryptocurrencies issued and sold directly to institutional investors as securities. This contrasts with the U.S. Securities and Exchange Commission’s (SEC) stance, which considers bitcoin not to be a security but views most other crypto tokens as securities. The proposed legislation in New Jersey would subject virtual currencies sold to institutional investors to the state’s “Uniform Securities Law” and any relevant regulations from the Bureau of Securities. The bill is currently under review by the Assembly Financial Institutions and Insurance Committee, with further hearings and a committee vote to follow.