Nevada is the latest state to adopt statutory amendments accommodating blockchain. In the first two weeks of June, Nevada enacted the following new laws:
- SB161 – The act creates a regulatory sandbox in the Department of Business and Industry for any use of a new or emerging technology, or any novel use of an existing technology, to address a problem, provide a benefit or otherwise offer or provide a financial product or service that is determined by the Director of the Department not to be widely available in Nevada. The act is effective June 13, 2019 for the purpose of adopting any regulations and performing any other preparatory administrative tasks necessary to carry out the provisions of the act, and on January 1, 2020, for all other purposes.
- SB162 – The act creates a definition for “public blockchain” and encourages government agencies to accept certain electronically certified documents, including those on a blockchain. “Public blockchain” is defined as an electronic record of transactions or other data that (1) is uniformly ordered; (2) is processed using a decentralized method by which two or more unaffiliated computers or machines verify the recorded transactions or other data; (3) is redundantly maintained by two or more unaffiliated computers or machines to guarantee the consistency or nonrepudiation of the recorded transactions or other data; (4) is validated by the use of cryptography; and (5) does not restrict the ability of any computer or machine to: (a) view the network on which the record is maintained; or (b) maintain or validate the state of the public blockchain. Portions of the act become effective October 1, 2019, with the remainder taking effect January 1, 2020.
- SB163 – The act amends Nevada’s business organization statutes to permit corporations, limited liability companies, limited partnerships and business trusts to store and maintain certain records on a blockchain. The act also permits the Secretary of State to promulgate further regulations on the subject. The act is effective October 1, 2019.
- SB164 – The act classifies “virtual currency” as intangible personal property and therefore exempts them from Nevada personal property taxation. Virtual currency means a digital representation of value that (1) is created, issued and maintained on a public blockchain (which is defined in a similar fashion as under SB161); (2) is not attached to any tangible asset or fiat currency; (3) is accepted as a means of payment; and (4) may only be transferred, stored or traded electronically. The act is effective July 1, 2019.