US state of Rhode Island is seeking to exempt Blockchain assets from the securities laws for a few use cases. Lawmakers in the state are seeking to implement legislation that will exempt Blockchain tokens from the securities laws.
As per the report, five Democratic and Republican senators have jointly filed the house bill 5595 this Wednesday. The bill is proposing the amendment of the Rhode Island Uniform Securities Act. It states that sellers or developers of “community Blockchain tokens” aren’t deemed as issuers of securities under the law. Hence, they are exempt from the securities act.
The New Legislation Will be Applicable Only in Certain Conditions
It is essential to state that the exemption, will be provided under certain terms. Firstly, the intended purpose of a digital token has to be for a “consumptive use case” and “be exchangeable for, for the receipt of, services, goods, or content. This will include the rights of access to services, goods, or content.”
Secondly, all developers or sellers of tokens shouldn’t sell their tokens to the initial buyers as a financial investment.
Furthermore, the proposed legislation indicates that individuals who push for the exchange of community Blockchain tokens shouldn’t be regarded as brokers-dealers or individuals who deal in securities. This should be the case as long as they can “electronically file an intent notice with the secretary of state” beforehand.
The proposed new legislation defines an open Blockchain coin as a digital unit created, and stored in a digital ledger. One which is capable of being traded between them without a custodian of value or intermediary
Binance Spends $100K in Tokens to Draw Users to the Testing of its Decentralized Exchange
Crypto exchange Binance is reportedly hoping to boost the total number of people testing its DEX (decentralized exchange) platform. It will be done by giving away the sum of $100,000 in digital tokens.
Announcing the report on Twitter this Friday, Changpeng Zhao the CEO of Binance said:
“To test the Binance DEX, we going to give away the $100,000 equivalent of the BNB token as a reward for the upcoming testnet trading competition.”
According to Zhao, the initiative will reportedly help the exchange launch its mainnet, of Binance DEX quickly.
Binance’s website states that the funds will be provided as prizes in the simulated trading competition. It will be kicking off next Thursday.
The users of the exchange who hold at least a single Binance Coin (BNB) in their accounts will be eligible to play a part in the event. All accounts can register 20 Binance Chain addresses. They will also receive 200 virtual BNB coins for each user address which will serve as starting funds for the upcoming competition.
Binance Chain Testnet to Reset Before 08:00 UTC on March 7
The firm also cited that Binance’s Chain testnet will reset on March 7, before 08:00 UTC. This will result in the clearing of all existing asset balances. After completion, trading for the competition will then commence.
The Binance coin, BNB is reportedly trading at $11 as of the time this report was published citing data given by CoinMarketCap.
On February 20, 2019, Binance announced that the DEX was now open for public testing. It is designed to allow users to create wallets and interact with the interface of the trading platform.