Hawaii’s state Legislature has introduced several bills that aim to make its financial markets some of the most crypto-friendly in the US. According to the Hawaii Tribune-Herald, seven crypto-friendly bills have been introduced in the state’s legislature.
Details Of The Bills
Commenting on the new bills, Senator Wakai said,
“I think it’s time to get Hawaii on the map for cryptocurrency exchanges and become a place for the industry to grow locally and thrive.”
This represents a major shift from the past, where Hawaii has been viewed as extremely hostile to the crypto sector. Due to the current state of Hawaii’s laws, some of the leading crypto exchanges such as Coinbase and Robinhood do not offer their services to residents of the state.
These new bills could help to make the state friendlier to the crypto sector. In short, the bills seek to create a regulatory task force for the crypto sector. Additionally, they would allow state agencies to accept crypto as payment for services. Lawmakers backing the bills are quite optimistic about their success. If passed, they could transform Hawaii into the leading state in terms of crypto transactions.
The Proposed Bills
The two main bills in this push to make Hawaii crypto-friendly are Bill 2697 and Bill 2287. These two bills would exempt crypto transactions from the state’s Money Transmitters Act. In its current form, the act has imposed strict requirements on crypto transactions operating in the island state. Consequently, most mainstream exchanges have opted to remain out of the state.
According to Senator Joy San Buenaventura, the act currently requires that money transmitters have the same amount of cash on hand as they invest in crypto. Senator Buenaventura added that at the time it seemed like a good idea. However, in practice, it means that people’s involvement is limited to extremely small transactions.
The other bills are Bill 2695, which establishes a Blockchain and Crypto Task Force, and Bill 2696, which allows the Director of Finance to authorize state agencies to accept crypto payments.
In Bill 2698, the state’s legislators aim to make it illegal to impede on the right to own, possess, and use any medium exchange. It mentions mediums of exchange such as cash, coin, bullion, digital currency, and scrip. In short, the bill will enshrine the right to own and trade using crypto in the law.
The other two bills are Bill 3076 and Bill 2108, which would establish a state program to oversee the licensing of crypto exchanges in the state.
What It Means For Hawaii
If passed, these bills could make Hawaii one of the most crypto-friendly states in the US. Not only would they establish a mechanism to license crypto exchanges, but they would also make it illegal for state agencies to impede crypto transactions.
The bills have faced some criticism due to the ecological impact of crypto mining on the environment. However, legislators noted that these were problems that could be overcome. Senator Bennette Misalucha noted that when the internet was starting, it also had some problems but these problems were solved.
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