# Blockchain Legal Terminology & Definitions

###### tags: `Law`

##### Sources:
* https://www.congress.gov/state-legislature-websites
___
##### Original Document:
https://hackmd.io/Eat2gnYqT56HQStI63JCNg?both

___
## Introduction

### Why Gather Legal Defintions?
Legal defintions serve as the leading guide to stability and direction for actors engaged in the realm of blockchain. In the fast evolving field of blockchain, people inside and outside of the blockchain community struggle to explain and arrive at a central way to define and explain various terms. The purpose of the different blockchain-centric legal definitions is to allow citizens and other relevant actors to understand the different terms in a closely related manner.

The purpose of this project is to serve as a collaborative platform to gather the sundry of ideas from the blockchain community to assist law makers in their pursuit to bring stability for blockchain and the law. In the last three years, several States continue to push forward legislation that define blockchain related terms. The sudden growth of this legislation is promising, but it must be done with caution and careful advoacy from those willing and able to provide expertise.

*This document serves as a non-exhaustive resource that should be continually updated as more legislation is created and discovered.*
___
## Mind Maps
### Digital Asset

# **Digital Asset**

## Connecticut ([SB 353; 2022](https://search.cga.state.ct.us/r/adv/))

- "a representation of economic,
proprietary or access rights 
that is stored in a <u>computer readable format</u>, 
including, but not limited to, 
digital consumer assets, digital securities 
and virtual currencies;"


## Idaho ([HB 465; 2022](https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2022/legislation/H0465.pdf))

- "a representation of economic, 
proprietary, or access rights 
that is stored in a computer-readable format
and includes <u>an open blockchain token</u>, 
digital commodity, digital security, 
virtual currency, and any other 
controllable electronic record.""


## Hawaii ([HB 591; 2022](https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=591&year=2022))

- "an electronic record. 
“Digital asset” <u>does not include</u> 
an underlying asset or 
liability to which an 
electronic record refers, 
unless the asset or liability 
is itself an electronic record.""

## Georgia ([HB 1342 2022 ](https://www.legis.ga.gov/legislation/62089))
- "a type of virtual currency that utilizes 
blockchain technology and can be 
digitally traded between users 
and converted or exchanged for legal tender.""

## Illinois ([SB 217; 2021](https://www.ilga.gov/legislation/102/SB/10200SB0217ham001.htm))
- "a representation of economic, 
proprietary, or access rights 
that is stored in a <u>computer readable format.</u>"

## Kentucky ([SB17; 2022](https://hackmd.io/Eat2gnYqT56HQStI63JCNg?view))
- a representation of economic, proprietary, or access rights that is:
Stored in a computer readable format; and
Either: 
a. A digital consumer asset;
b. A digital security; 
or c. Virtual currency;

## Massachusetts ([SB 1033; 2021](https://malegislature.gov/Bills/192/S1033))
- an electronic record in which
an individual has a right or interest. 
The term does not include an underlying asset
or liability unless the asset
or liability is itself an electronic record.

## New Jersey ([SB1267; 2022](https://www.njleg.state.nj.us/bill-search/2022/A1975))
- a representation of economic, 
proprietary or access rights 
that is stored in a [computer] machine 
readable format, has a transaction
history that is recorded in
a distributed,digital ledger 
or digital data structure 
in which consensus is achieved 
through a mathematically verifiable process,
and includes digital consumer assets [, digital securities] and virtual currency.

___
### Private Key

# **Private Key**

## Idaho ([HB 583](https://legislature.idaho.gov/sessioninfo/2022/legislation/H0583/)), Kentucky ([SB17](https://apps.legislature.ky.gov/SessionRecord/22RS/SB17/SB17.pdf)), et al.
- "a unique element of 
cryptographic data or any substantially similar analogue that is:
a) Held by a person;
b) Paired with a unique, 
publicly available element of cryptographic data; and
Associated with an algorithm
that is necessary to carry out
an encryption or decryption required to execute a transaction."

## New York ([HB A08820; 2022](https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A08820&term=2021&Summary=Y&Text=Y))
- "the unique identifier of a wallet, 
or any substantially similar analogue, 
that is paired with a publicly 
available identifier and associated 
with an algorithm that is necessary
to carry out an encryption
or decryption required to execute a transaction.""

---

## State Legislation

### Arizona
([HB 2204](https://www.azleg.gov/legtext/55leg/2R/laws/0369.pdf))

* **"GAS FEE"** MEANS A FEE PAID TO THE OPERATOR OF A VIRTUAL NETWORK
FOR THE USE OF THE NETWORK TO FACILITATE THE PURCHASE, SALE OR EXCHANGE OF
VIRTUAL CURRENCY OR A NON-FUNGIBLE TOKEN.

* **"NON-FUNGIBLE TOKEN"** MEANS A NON-FUNGIBLE CRYPTOGRAPHIC ASSET ON
A BLOCKCHAIN THAT POSSESSES UNIQUE IDENTIFIERS OR OTHER METADATA THAT DISTINGUISHES THE ASSET FROM ANOTHER TOKEN OR ASSET IN A MANNER THAT MAKES THE ASSET IRREPLACEABLE AND NON-EXCHANGEABLE FOR A SIMILAR TOKEN OR ASSET.

* **"VIRTUAL CURRENCY"** MEANS A DIGITAL REPRESENTATION OF VALUE THAT FUNCTIONS AS A MEDIUM OF EXCHANGE, A UNIT OF ACCOUNT AND A STORE OF VALUE OTHER THAN A REPRESENTATION OF THE UNITED STATES DOLLAR OR A FOREIGN CURRENCY
___
### Arkansas
#### ([HB1888](https://www.arkleg.state.ar.us/Bills/FTPDocument?path=%2FBills%2F2021R%2FPublic%2FHB1888.pdf))

* **"Virtual currency"** means a digital representation of value.

"Virtual currency" functions as:
i) A medium of exchange;
ii) A unit of account; or
iii) A store of value.

#### ([HB1944](https://www.arkleg.state.ar.us/Bills/FTPDocument?path=%2FBills%2F2019R%2FPublic%2FHB1944.pdf))

* **"Blockchain technology"** means a shared, immutable ledger that facilitates the process of recording one (1) or more transactions and tracking one (1) or more tangible or intangible assets in a business network;
* **"Smart contract"** means: Business logic that runs on a blockchain; or
B)A software program that stores rules on a shared and replicated ledger and uses the stored rules for:

i) Negotiating the terms of a contract;
ii) Automatically verifying the contract; and
iii) Executing the terms of a contract.
___
### Connecticut
#### ([SB 353](https://search.cga.state.ct.us/r/adv/))

* **"Digital asset"** means a representation of economic, proprietary or access rights that is stored in a computer readable format, including, but not limited to, digital consumer assets, digital securities and virtual currencies;
* **"Digital consumer asset"** means a digital asset that is used or bought primarily for consumptive, personal or household purposes, including, but not limited to, (A) an open blockchain token constituting intangible property as otherwise provided by law, and (B) any other digital asset that is not a digital security or virtual currency. "Digital consumer asset" shall not be construed to include digital securities or virtual currencies
* **"Digital security"** means a digital asset that is a security, as defined in subsection (a) of section 42a-8-102 of the general statutes. "Digital security" shall not be construed to include digital consumer assets or virtual currencies;
* **"Virtual currency"** has the same meaning as provided in section 36a-596 of the general statutes. "Virtual currency" shall not be construed to include digital consumer assets or digital securities.
* **"Private key"** means a unique element of cryptographic data, or any substantially similar analogue, that is (A) held by a person, (B) paired with a unique, publicly available element of cryptographic data, and ( C) associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
___
### Deleware
#### ([HB1370](https://www.legis.state.pa.us/cfdocs/legis/home/docHits.cfmDocId=1579&Index=D%3a%5cProgram%20Files%20%28x86%29%5cdtSearch%20Developer%5cUserdata%5c20210txt&HitCount=17&hits=f6+149+15e+219+252+274+285+2b4+2d0+2ef+30a+334+34c+3b2+3e5+471+957+))

* **"Blockchain."** A digital ledger or database which is chronological, consensus-based, decentralized and mathematically verified in nature.

#### ([HB 1724](https://www.legis.state.pa.us/cfdocs/legis/home/docHits.cfm?DocId=1996&Index=D%3a%5cProgram%20Files%20%28x86%29%5cdtSearch%20Developer%5cUserdata%5c20210txt&HitCount=1&hits=ea+))
* **"Digital currency."** A form of currency that exists only in digital or electronic form. The term includes cryptocurrency.
___
### Georgia
#### ([HB 1342](https://www.legis.ga.gov/legislation/62089))

* **'Blockchain technology'** means shared or distributed data structures or digital ledgers governed by consensus protocols and maintained by peer-to-peer networks that store digital transactions and verify and secure transactions cryptographically.
* **'Digital assets'** means a type of virtual currency that utilizes blockchain technology and can be digitally traded between users and converted or exchanged for legal tender;"
___
### Hawaii
#### ([HB 591](https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=591&year=2022))
* **"Digital asset"** means an electronic record. "Digital asset" does not include an underlying asset or liability to which an electronic record refers, unless the asset or liability is itself an electronic record.
___
### Idaho
#### ([HB 465](https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2022/legislation/H0465.pdf))
* **"Digital asset"** means a representation of economic, proprietary, or access rights that is stored in a computer-readable format and includes an open blockchain token, digital commodity, digital security, virtual currency, and any other controllable electronic record.
___
#### ([HB 583](https://legislature.idaho.gov/sessioninfo/2022/legislation/H0583/))
* **"Multi-signature arrangement"** means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset in which two (2) or more private keys are required to conduct a transaction or any other substantially similar analogue.
* **"Private key"** means a unique element of cryptographic data or any substantially similar analogue that is:
a) Held by a person;
b) Paired with a unique, publicly available element of cryptographic data; and
c) Associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
* **"Virtual currency"** means a digital asset that is used as a medium of exchange, unit of account, or store of value.
___
### Illinois
#### ([205 ILCS 730/1](https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=4030&ChapterID=20))

* **"Blockchain"** means an electronic record created by the use of a decentralized method by multiple parties to verify and store a digital record of transactions which is secured by the use of a cryptographic hash of previous transaction information.

* **"Cryptographic hash"** means a mathematical algorithm which performs a one-way conversion of input data into output data of a specified size to verify the integrity of the data.

* **"Electronic"** means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

* **"Electronic record"** means a record created, generated, sent, communicated, received, or stored by electronic means, including a blockchain or a smart contract.

* **"Record"** means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

* **"Smart contract"** means a contract stored as an electronic record which is verified by the use of a blockchain.

#### ([SB 217](https://www.ilga.gov/legislation/102/SB/10200SB0217ham001.htm))

* **"digital asset"** means a representation of economic, proprietary, or access rights that is stored in a computer readable format."

___
### Kentucky

#### ([SB340](https://apps.legislature.ky.gov/SessionRecord/22RS/SB323/SB323.pdf))
* **"Blockchain technology"** or "blockchain" means shared or distributed data
structures or digital ledgers governed by consensus protocols and maintained by
peer-to-peer networks that:
a) Store digital transactions; and
b) Verify and secure transactions cryptographically;

* **"Computing system node"** means equipment purchased or leased:
a) For operational use in this state;
b) That consists of specialized computers used in the commercial mining of
cryptocurrency; and
c) That includes all power-related equipment required to operate the
specialized computers used in the commercial mining of cryptocurrency, to
the extent that any power produced is used to operate the equipment and is not sold or fed back to the electric grid;

* **"Cryptocurrency"** means a type of virtual currency that utilizes blockchain
technology and that:
a) Can be digitally traded between users; or
b) Can be converted or exchanged for legal tender;

___
#### ([HB724](https://apps.legislature.ky.gov/SessionRecord/22RS/HB724/HB724.pdf))
* **"Fintech"** means innovative products or services that support the provision of banking or financial services;

#### ([SB17](https://apps.legislature.ky.gov/SessionRecord/22RS/SB17/SB17.pdf))
* **"Digital asset"** means a representation of economic, proprietary, or access
rights that is:
1. Stored in a computer readable format; and
2. Either:
a. A digital consumer asset;
b. A digital security; or
c. Virtual currency;

* **"Digital consumer asset":**
1. Means a digital asset that is used or bought primarily for consumptive,
personal, or household purposes, except a digital security or virtual
currency; and
2. Shall include an open blockchain token that is intangible personal property;
* **"Digital security"** means a digital asset that is a security, as defined in KRS
292.310; and
* **"Virtual currency"** means a digital asset, except an open blockchain token
that is a digital consumer asset, that is:
1. Used as a medium of exchange, unit of account, or store of value; and
2. Not recognized as legal tender by the United States government.

* **"Private key"** means a unique element of cryptographic data, or any
substantially similar analogue, that is:
1. Held by a person;
2. Paired with a unique, publicly available element of cryptographic
data; and
3. Associated with an algorithm that is necessary to carry out an
encryption or decryption required to execute a transaction;

* **"Multi-signature arrangement"** means:
1. A system of access control relating to a digital asset for the purpose of
preventing unauthorized transactions relating to the asset, in which
two (2) or more private keys are required to conduct a transaction; or
2. A system substantially similar to the system described in subparagraph
1. of this paragraph; and

* **"Smart contract"** means:
1. An automated transaction, as defined in KRS 369.102; or
2. Any other similar transaction that is comprised of code, script, or
programming language that:
a. Executes the terms of an agreement; and
b. May include:
i. Taking custody of, and transferring, an asset; or
ii. Issuing executable instructions, based on the occurrence or
nonoccurrence of specified conditions.
___
### Kansas
#### ([Electronic Transactions Statute](http://www.kslegislature.org/li/b2021_22/statute/016_000_0000_chapter/016_016_0000_article/016_016_0002_section/016_016_0002_k/))
* **"Digital signature"** means a type of electronic signature consisting of a transformation of an electronic message using an asymmetric crypto system such that a person having the initial message and the signer's public key can accurately determine whether:
* **"Electronic agent"** means a computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual.
___
### Massachusetts
#### ([SB 1033](https://malegislature.gov/Bills/192/S1033))
* **Digital asset”** means an electronic record in which an individual has a right or interest. The term does not include an underlying asset or liability unless the asset or liability is itself an electronic record.

___
### Michigan
#### ([SB 888](http://www.legislature.mi.gov/documents/2021-2022/billengrossed/Senate/pdf/2022-SEBS-0888.pdf))
* **"Blockchain"** means a mathematically secured, chronological, and decentralized ledger or database.
* **"Cryptocurrency"** means digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, and that operates independently of a central bank.
___
### Mississippi
#### ([HB 1153](http://billstatus.ls.state.ms.us/2022/pdf/history/HB/HB1153.xml))
* **"Digital asset"** means a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency;
* **"Multi-signature arrangement"** means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset, in which two (2) or more private keys are required to conduct a transaction, or any substantially similar analogue;
* **"Private key"** means a unique element of cryptographic data, or any substantially similar analogue, which is:
i) Held by a person;
ii) Paired with a unique, publicly available element of cryptographic data; and
ii) Associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
* **"smart contract"** means an automated transaction, or any substantially similar analogue, which is comprised of code, script or programming language that executes the terms of an agreement, and which may include taking custody of and transferring an asset, or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions.
___
### Missouri
#### ([HB 2672](https://house.mo.gov/billtracking/bills221/hlrbillspdf/5117H.01I.pdf))

* **Virtual currencies.** As used in this section, "virtual currency" means any type of digital representation of value that:
a) Is used as a medium of exchange, unit of account, or store of value; and
b) Is not recognized as legal tender by the United States government.
* **"Blockchain"**, a digital ledger or database that is chronological, consensus3 based, decentralized, and mathematically verified in nature;
* **"Digital asset"**, a representation of economic, proprietary, or access rights that is stored in a computer-readable format and is either a digital consumer asset, digital security, or virtual currency;
___
#### ([HB 1159](https://www.house.mo.gov/billtracking/bills191/hlrbillspdf/2266H.01I.pdf))
* **"Multi-signature arrangement"**, a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset, in which two or more private keys are required to conduct a transaction, or any substantially similar analogue;
* **"Private key"**, a unique element of cryptographic data, or any substantially similar analogue, that is:
a) Held by a person;
b) Paired with a unique, publicly-available element of cryptographic data; and
c) Associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.

---
### Nebraska
#### ([LB 649](https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=44186))
* **Blockchain** means a distributed digital record of controllable electronic record transactions

___
### New Hampshire
#### ([HB 1502](http://www.gencourt.state.nh.us/bill_status/pdf.aspx?id=28451&q=billVersion))

* **"Digital asset"** means a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency.
* **"Virtual currency"** means a digital asset that is:
(a) Used as a medium of exchange, unit of account or store of value; and
(b) Not recognized as legal tender by the United States government.
* **Multi-signature arrangement"** means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset, in which 2 or more private keys are required to conduct a transaction, or any substantially similar analogue.
* **"Private key"** means a unique element of cryptographic data, or any substantially
similar analogue, which is:
(1) Held by a person;
(2) Paired with a unique, publicly available element of cryptographic data; and
(3) Associated with an algorithm that is necessary to carry out an encryption or
decryption required to execute a transaction.

___
### New Jersey
#### ([SB1267](https://www.njleg.state.nj.us/bill-search/2022/A1975))
* **"Blockchain"** means a digital ledger or database which is chronological, consensus-based, decentralized and mathematically verified in nature.
* **"Digital asset"** means a representation of economic, proprietary or access rights that is stored in a [computer] machine readable format, has a transaction history that is recorded in a distributed,digital ledger or digital data structure in which consensus is achieved through a mathematically verifiable process, and includes digital consumer assets [, digital securities] and virtual currency.
* **"Multi signature arrangement"** means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset, in which two or more private keys are required to conduct a transaction, or any substantially similar analogue.
* **"Private key"** means a unique element of cryptographic data, or any substantially similar analogue, which is:
1) held by a person;
2) paired with a unique publicly-available element of cryptographic data; and
3) associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
* **“Smart contract”** means:
1) an automated transaction conducted or performed, in whole or in part, by electronic means or electronic records, in which the acts or records of one or both parties are not reviewed by an individual in the ordinary course in forming a contract, performing under an existing contract or fulfilling an obligation required by the transaction; or
2) any substantially similar analogue, which is comprised of code, script, or programming language that executes the terms of an agreement, and which may include taking custody of and transferring an asset, or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions

* **"Limited liability autonomous organization" or "LAO"** means a decentralized autonomous organization
#### ([S1756](https://www.njleg.state.nj.us/bill-search/2022/A2371))
* **“Agent”** means a separate business entity from the principal that the principal authorizes, through a written agreement or otherwise, to sell its instruments or, in the case of funds transmission, to sell its send and receive transfer services.
* **Virtual currency”** means a digital asset that is used as a medium of exchange, unit of account, or store of value, and is not recognized as legal tender by the United States government.
___
### New York
#### ([HB A08820](https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A08820&term=2021&Summary=Y&Text=Y))

* **"Virtual tokens"** shall mean security tokens and stablecoins;
* **"Security tokens"** shall mean any form of fungible and non-fungible computer code by which all such forms of ownership of said computer code is determined through verification of transactions or any derivative method, and that is stored on a peer-to-peer computer network or any other such computerized system or through any derivative means of storage, and which conforms to one of the following:
**a)** such class of virtual tokens are advertised by the developer or an agent of the developer at the developer's direction to be bought and sold for the purpose of profit, whether or not such purpose is advertised as the sole purpose;
**b)** such class of virtual tokens are reasonably understood by members of the public to be bought and sold for the purpose of profit;
**c)** the value of such class of virtual tokens is determined by the supply and demand of the virtual token;
**d)** such class of virtual tokens: (i) are not pegged to an external source, whether or not such external source is volatile, (ii) are pegged to another virtual token, or (iii) such class of virtual tokens do not employ technology which prevents large fluctuations in its price and such technology fails to prevent the same

* **"Stablecoin"** shall mean any form of fungible and non-fungible computer code by which all such forms of ownership of said computer code is determined through verification of transactions or any derivative method, and that is stored on a peer-to-peer computer network or any other such computerized system or through any derivative means of storage, and which conforms to all of the following...:

* **"Non-fungible token"** shall mean a virtual token used to denote on the blockchain ownership of any digital or physical item or any derivative means thereof;

* **"Fungible token"** shall mean any virtual token stored on the blockchain other than non-fungible tokens;

* **"Token"** shall mean the technical standard used to create a fungible or non-fungible piece of computer code;

* **"Wallet"** shall mean a device, program, or service which stores the public and/or private keys for virtual token transactions;

* **"Burning"** shall mean any method of someone making tokens inaccessible to any person including himself or herself with the intention of doing so;

* **"Rug pull"** shall mean the act of a developer developing a class of virtual tokens, owning more than ten percent of the supply of such class of virtual tokens, and selling more than ten percent of the total supply of such class of virtual tokens within a five-year period from the date of the last sale of the same;

* **"Blockchain"** shall mean any type of technology which stores code on a database of which said database represents the record of transactions that make up virtual tokens or any derivative technology; and

* **"Private key"** shall mean the unique identifier of a wallet, or any substantially similar analogue, that is paired with a publicly available identifier and associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
___
### North Carolina
([HB 624](https://www.ncleg.gov/Sessions/2021/Bills/House/PDF/H624v6.pdf))

* **"Blockchain technology"** – An electronic method for storing cryptographically secure data in a database or distributed ledger technology that is decentralized, consensus-based, mathematically verified, and distributed across multiple locations.
* **FinTech** – Certain innovative products or services that support the provision of banking or financial services.
___
### Oklahoma
#### ([HB 3279](http://www.oklegislature.gov/tsrs_measures.aspx))
* **"Blockchain"** means a system or digital ledger of transactions maintained by a network of computers in a way that makes it difficult to hack or alter, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant's ledger.
* **"Digital contract"** means a coded contract that functions as an immutable digital agreement which is entered into between customers, in order to specify the terms and conditions of payment, custody, performance, timing, delivery, tax remittance, regulatory compliance, escrow, contingencies, choice of law, forum, or other terms. Digital contract does not mean an asset or convertible virtual currency;
* **"Digital identity"** means immutable information about an entity or individual used by computer systems to record and represent an external or internal agent, which may be a person, organization, application, or device, and any permissive access relative to such is protected with biometric identification. Digital identity is functional software programmed uniquely for the individual customer and cannot be resold, duplicated, or counterfeited;
* **"Distributed ledger technology"** means a type of database spread across multiple sites, regions, or participants, known as validators, that does not require a sequence of blocks;
* **"Distributed ledger technology asset"** means a digital unit with specified characteristics, secured through a decentralized ledger or database, exchangeable for goods or services, and capable of being traded or transferred between persons with the use of a distributed ledger technology asset offering agent and fiduciary or the custodial intermediary.
* **"Distributed ledger technology asset offering agent"** means a person who is appointed by a distributed ledger technology asset offering ecosystem operator and who is a licensed attorney with at least fifteen (15) years of law practice, in good standing with the Oklahoma Bar Association, and is appointed as counsel by the submission of entry of appearance documentation to the Oklahoma Department of Securities, the Office of Management and Enterprise Services, and the Oklahoma Tax Commission;
* **"Fintech"** means a combination of finance and technology and is a technology that seeks to improve, support, and automate payment, banking, and other financial services;
* **"Smart contract"** means a self-executing digital contract, which can be an escrow agreement, with the terms of the agreement between buyer and seller directly written into lines of code wherein the code and the agreement contained therein exist across a distributed, decentralized, blockchain network. Smart contracts are not digital assets but are software packages and use distributed ledger technologies with unalterable accounting and immutable identification and escrow functions;
#### ([HB 4046](http://www.oklegislature.gov/tsrs_measures.aspx))
* **"Cryptocurrency"** means a type of virtual currency that utilizes blockchain technology and that can be digitally traded between users or can be converted or exchanged for legal tender.
___
### Rhode Island
#### ([HB 7254](http://webserver.rilin.state.ri.us/BillText/BillText22/HouseText22/H7254.pdf))
* **"Blockchain"** means a digital ledger or database which is chronological, consensus based, decentralized and mathematically verified in nature.
* **"Digital asset"** means a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency;

___
### South Carolina
#### ([H3495](https://www.scstatehouse.gov/billsearch.php?billnumbers=3495&session=124&summary=B))
* **'Digital asset'** means a representation of economic, proprietary, or access rights that is stored in a computer-readable format, and includes digital consumer assets, digital securities, and virtual currency
* **'Digital security'** means a digital asset which constitutes a security, but excludes digital consumer assets and virtual currency.
* **'Virtual currency'** means a digital asset that is:
a) used as a medium of exchange, unit of account, or store of value; and
b) not recognized as legal tender by the United States government.
* **'Multisignature arrangement'** means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset, in which two or more private keys are required to conduct a transaction, or any substantially similar analogue.
* **'Private keys'** means a unique element of cryptographic data, or any substantially similar analogue, which is:
a) held by a person;
b) paired with a unique, publicly available element of cryptographic data; and
c) associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
___
### Tennessee
#### ([HB 2644](https://www.capitol.tn.gov/Bills/112/Bill/HB2644.pdf))

* **"Blockchain"** means a decentralized data system in which the data stored is mathematically verifiable, that uses distributed ledger technology, as defined in § 47-10-201, or databases to store specialized data in the permanent order of transactions recorded;
* **"Cryptocurrency"** means a virtual currency that utilizes cryptography to validate and secure transactions that are digitally recorded through distributed ledger technology;
* **"Non-fungible token"** means a non-fungible cryptographic asset on a blockchain, which possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset;
* **"Virtual currency"** means a digital representation of value that functions as a medium of exchange, a unit of discount, or a store of value, but does not have legal tender status in any jurisdiction."
___
### Utah
#### ([SB 182](https://le.utah.gov/~2022/bills/static/SB0182.html))
* **"Agent"** means a person who is authorized to act on behalf of an owner with respect to a digital asset.
* **"Digital asset"** means a representation of economic, proprietary, or access rights that is stored in a computer readable format.
* **"Multi-signature arrangement"** means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset, in which two or more private keys are required to conduct a transaction.
* **"Private key"** means a unique element of cryptographic data, which is:
a) held by a person;
b) paired with a unique, publicly available element of cryptographic data; and
c) associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
* **"Smart contract"** means a transaction which is comprised of code, script, or programming language that executes the terms of an agreement, and which may include taking custody of and transferring a digital asset, or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions.
___
### Vermont
([S-0269](https://legislature.vermont.gov/Documents/2018/Docs/BILLS/S-0269/S-0269%20House%20proposal%20of%20amendment%20Official.pdf))

* **“Blockchain”** means a cryptographically secured, chronological, and decentralized consensus ledger or consensus database, maintained via Internet interaction, peer-to-peer network, or other interaction.

* **“Blockchain technology”** means computer software or hardware or collections of computer software or hardware, or both, that utilize or enable a blockchain.
___
### West Virginia
#### ([HB 4010](http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=4010&year=2022&sessiontype=RS&btype=bill))
* **“Blockchain”** means a digital ledger or database which is chronological, consensus‑based, decentralized and mathematically verified in nature;
* **“Digital asset”** means a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities, and virtual currency;
* **“Multi‑signature arrangement”** means a system of access control relating to a digital asset for the purposes of preventing unauthorized transactions relating to the asset, in which two or more private keys are required to conduct a transaction, or any substantially similar analogue;
* **“Private key”** means a unique element of cryptographic data, or any substantially similar analogue, which is:
A) Held by a person;
B) Paired with a unique, publicly available element of cryptographic data; and
C) Associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction.
___
### Wyoming
#### ([HB 0068](https://www.wyoleg.gov/Legislation/2022/SF0068))
* **"Smart contract"** means an automated transaction, as defined in W.S. 40‑21‑102(a)(ii), or any substantially similar analogue, or code, script or programming language relying on a blockchain which may include taking custody of and transferring an asset, administrating membership interest votes with respect to a decentralized autonomous organization or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions.
#### ([SF0125](https://www.wyoleg.gov/Legislation/2019/sf0125))
* **"Digital asset"** means a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency.
#### ([SF0038](https://www.wyoleg.gov/Legislation/2021/SF0038))
* **"Smart contract"** means an automated transaction, as defined in W.S. 40‑21‑102(a)(ii), or any substantially similar analogue, which is comprised of code, script or programming language that executes the terms of an agreement and which may include taking custody of and transferring an asset, administrating membership interest votes with respect to a decentralized autonomous organization or issuing executable instructions for these actions, based on the occurrence or nonoccurrence of specified conditions.
* A **"decentralized autonomous organization"** is a limited liability company whose articles of organization contain a statement that the company is a decentralized autonomous organization as described in subsection c) of this section.

---
## United States Legislation

### “Lummis-Gillibrand Responsible Financial Innovation Act"

“(1) DEPOSITORY INSTITUTION.—The term ‘depository institution’ has the meaning given
the term in section 19(b)(1) of the Federal Reserve Act (12 U.S.C. 461(b)(1)).

(2) DIGITAL ASSET.—The term ‘digital asset’—
“(A) means a natively electronic asset that—
“(i) confers economic, proprietary, or access rights or powers; and
“(ii) is recorded using cryptographically secured distributed ledger technology,
or any similar analogue; and
“(B) includes:
“(i) virtual currency and ancillary assets, consistent with section 2( c)(2)(F) of
the Commodity Exchange Act;
“(ii) payment stablecoins, consistent with section 403 of the Legal Certainty
for Bank Products Act of 2000 (7 U.S.C. 27a); and
“(iii) other securities and commodities, subject to subparagraph (A).

“(3) DIGITAL ASSET INTERMEDIARY.—The term ‘digital asset intermediary’—
“(A) means a person who holds a license, registration, or other similar authorization,
as specified by this chapter, the Commodity Exchange Act (7 U.S.C. 1 et seq.), the
Securities Act of 1933 (15 U.S.C. 77a et seq.), the Corporation of Foreign Bondholders
Act, 1933 (15 U.S.C. 77bb et seq.), the Trust Indenture Act of 1939 (15 U.S.C. 77aaa
et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), the Securities
Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), the Investment Company
Act of 1940 (15 U.S.C. 80a–1 et seq.), the Investment Advisers Act of 1940 (15 U.S.C.
80b–1), and the Omnibus Small Business Capital Formation Act of 1980 (15 U.S.C.
80c), that may conduct market activities relating in digital assets, or a person who is
required by law to hold such a license, registration or other similar authorization; and
“(B) includes a person who holds a license, registration, or other similar
authorization under State or Federal law that issues a payment stablecoin, or person
who is required by law to hold such a license, registration or other similar
authorization; and
“( C) does not include a depository institution.

“(4) DISTRIBUTED LEDGER TECHNOLOGY.—The term ‘distributed ledger technology’
means technology that enables the operation and use of a ledger that—
“(A) is shared across a set of distributed nodes that participate in a network and store
a complete or partial replica of the ledger;
“(B) is synchronized between the nodes;
“( C) has data appended to the ledger by following the specified consensus
mechanism of the ledger;
“(D) may be accessible to anyone or restricted to a subset of participants;
and “(E) may require participants to have authorization to perform certain actions or
require no authorization.
“(5) PAYMENT STABLECOIN.—The term ‘payment stablecoin’ means a digital asset that
is—
“(A) redeemable, on demand, on a one-to-one basis for instruments denominated in6 United States dollars and defined as legal tender under section 5103 or for instruments
defined as legal tender under the laws of a foreign country (excluding digital assets
defined as legal tender under the laws of a foreign country);
“(B) issued by a business entity;
“( C) accompanied by a statement from the issuer that the asset is redeemable as
specified in subparagraph (A) from the issuer or another identified person;
“(D) backed by 1 or more financial assets (excluding other digital assets), consistent
with subparagraph (A); and
“(E) intended to be used as a medium of exchange.
“(6) PERSON WHO PROVIDES DIGITAL ASSET SERVICES.—The term ‘person who provides
digital asset services’ means—
“(A) a digital asset intermediary;
“(B) a financial institution, as defined in section 1a of the Commodity Exchange Act
(7 U.S.C. 1a); and
“( C) any other person conducting digital asset activities pursuant to a Federal or
State charter, license, registration, or other similar authorization, or a person who is
required by law to hold such a license, registration or other similar authorization.

“(7) SECURITY.—The term ‘security’ has the meaning given the term in section 3(a) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).

“(8) SMART CONTRACT.—The term ‘smart contract’—
“(A) means—
“(i) computer code deployed to a distributed ledger technology network that
executes an instruction based on the occurrence or nonoccurrence of specified
conditions; or
“(ii) any similar analogue; and
“(B) may include taking possession or control of a digital asset and transferring the
asset or issuing executable instructions for these actions.

“(9) SOURCE CODE VERSION.—The term ‘source code version’—
“(A) means the source code version comprising a digital asset; and
35 “(B) does not include software used to manage or facilitate transactions in a digital
36 asset.

“(10) VIRTUAL CURRENCY.—The term ‘virtual currency’—

“(A) means a digital asset that—
“(i) is used primarily as a medium of exchange, unit of account, store of value,
or any combination of such functions;
“(ii) is not legal tender, as described in section 5103; and
“(iii) does not derive value from or is backed by an underlying financial asset
(except other digital assets); and
“(B) includes a digital asset, consistent with subparagraph (A) that is accompanied
by a statement from the issuer that a denominated or pegged value will be maintained
and be available upon redemption from the issuer or other identified person, based
solely on a smart contract.”.
(b) Technical and Conforming Amendment.—The table of contents for subtitle VI of title 31,
United States Code, is amended by adding at the end the following:
“98.Digital assets
9801”