Montana Passes Bill to Exempt Utility Tokens From Securities Laws
The governor of the U.S. state of Montana, Steve Bullock, signed House Bill 584 into law earlier this month, recognizing utility tokens and exempting them from being considered as securities under local rules, with caveats.
The bill was sponsored by State Representative Shane Morigeau (Democrat) and sets out that utility token transactions are permissible as long as the purpose of the token is “primarily consumptive.”
The issuer must not market the token as an investment or for speculation, and must still file a notice of intent to sell the tokens with the state’s securities commissioner. Other restriction include that the “consumptive purpose” of the utility token must available within 180 days after its time of sale or transfer, and the initial buyer is barred from reselling or transferring the token until its consumptive purpose has become available.
“Consumptive purpose” is defined being to provide or receive goods, services, or content including access to goods, services, or content.