PRIOR PRINTER'S NOS. 3475, 3747
PRINTER'S NO. 3791
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2481
Session of
2024
INTRODUCED BY CABELL, KAUFER, FLICK, RYNCAVAGE, ECKER AND KUTZ,
JULY 2, 2024
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
OCTOBER 22, 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
ledger and any other functions.
"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.
"DECENTRALIZED." A SYSTEM OR NETWORK WHERE NO SINGLE ENTITY,
INCLUDING A PUBLIC OR PRIVATE ENTITY, HOLDS UNILATERAL CONTROL
OVER THE GOVERNANCE, TRANSACTIONS OR MAINTENANCE OF THE LEDGER,
AND IN WHICH CONSENSUS IS ACHIEVED THROUGH A DISTRIBUTED NETWORK
OF PARTICIPANTS.
"Digital asset." A DECENTRALIZED virtual currency,
cryptocurrency, native electronic asset, including a
DECENTRALIZED stablecoin or nonfungible token, or any other
digital-only asset that confers economic, proprietary or access
rights or powers. THE TERM DOES NOT INCLUDE A CENTRAL BANK
DIGITAL CURRENCY OR ANY OTHER GOVERNMENT-CONTROLLED DIGITAL-ONLY
ASSET.
"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.
20240HB2481PN3791 - 2 -
<--
<--
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Prohibition.--The Commonwealth or a municipality may not
prohibit, restrict or otherwise impair the ability of an
individual or business to do either of the following:
(1) Accept digital assets as a method of payment for
legal goods and services.
(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,
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.
Section 5. Construction.
Nothing in this act shall be construed to override or limit
the applicability of any of the following:
(1) 13 Pa.C.S. (relating to commercial code), including
provisions regarding transferrable electronic records.
(2) 20 Pa.C.S. Ch. 39 (relating to uniform fiduciary
20240HB2481PN3791 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
access to digital assets).
(3) Requirements for the licensing and regulation of
virtual currency businesses under the act of September 2,
1965 (P.L.490, No.249), referred to as the Money Transmission
Business Licensing Law, or any other State law providing for
the licensing and regulation virtual currency businesses and
the protection of virtual currency business customers.
(4) Any State law or regulation that requires the
reporting and disclosure of information regarding suspected
or attempted financial exploitation or fraud.
Section 6. Effective date.
This act shall take effect in 60 days.
20240HB2481PN3791 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12