PRINTER'S NO. 3475
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2481
Session of
2024
INTRODUCED BY CABELL, KAUFER, FLICK, RYNCAVAGE, ECKER AND KUTZ,
JULY 2, 2024
REFERRED TO COMMITTEE ON COMMERCE, JULY 2, 2024
AN ACT
Providing for restriction on use and custody of digital assets
prohibited and for use of nodes authorized.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Digital
Assets Authorization Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Blockchain." Data that is shared across a network to create
a ledger of verified transactions or information among network
participants linked using cryptography to maintain the integrity
of the ledger and to execute other functions and distributed
among network participants in an automated fashion to
concurrently update network participants on the state of the
ledger and any other functions.
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"Blockchain protocol." An executable software deployed to a
blockchain composed of source code that is publicly available
and accessible, including a smart contract or a network of smart
contracts.
"Digital asset." A virtual currency, cryptocurrency, native
electronic asset, including a stablecoin or nonfungible token,
or any other digital-only asset that confers economic,
proprietary or access rights or powers.
"Hardware wallet." A physical device that is not
continuously connected to the Internet and allows an individual
to secure and transfer a digital asset and under which the owner
of the digital asset retains independent control over the
digital asset.
"Node." A computational device that contains and updates a
copy of a blockchain.
"Self-hosted wallet." A digital interface used to secure and
transfer a digital asset and under which the owner of the
digital asset retains independent control over the digital
asset.
Section 3. Restriction on use and custody of digital assets
prohibited.
(a) Prohibition.--The Commonwealth or a municipality may not
prohibit, restrict or otherwise impair the ability of an
individual to:
(1) use a digital asset to purchase legal goods or
services; and
(2) maintain self-custody of a digital asset using a
self-hosted wallet or hardware wallet.
(b) Additional taxation prohibited.--The Commonwealth or a
municipality may not impose an additional tax, withholding,
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assessment or charge on a digit asset that is based solely on
the use of the digital asset as a method of payment to purchase
legal goods or services. Nothing in this subsection shall be
construed to prohibit the Commonwealth or a municipality from
imposing a tax, withholding, assessment or charge on a digital
asset for a purchase if the tax, withholding, assessment or
charge would otherwise be imposed for the purchase through the
use of legal tender of the United States.
Section 4. Use of nodes authorized.
It shall be lawful in this Commonwealth to operate a node for
any of the following purposes:
(1) Connecting to a blockchain protocol or a protocol
built on top of a blockchain protocol.
(2) Transferring a digital asset on a blockchain
protocol.
(3) Participating in staking on a blockchain protocol.
Section 5. Effective date.
This act shall take effect in 60 days.
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