Nevada Senate Bill 398 Becomes Law, Prohibiting Tax on Blockchain Technology

Judging by recent legislation, which is mostly hostile towards blockchain technology, Senate Bill 398 in Nevada seems like an unprecedented step in a positive direction. SB398 prohibits taxation and regulations regarding the use and implementation of blockchain technology, and it was approved by Nevada governor Brian Sandoval. 

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The bill is meant to create an environment that is hospitable rather than hostile to new technology startups, and it is the first one to recognize smart contracts as legitimate and binding.

The bill was filed by Ben Kieckhefer on March 20. It appears he did not want the State to follow in the footsteps of places like New York who have generated regulations that harm bitcoin and other blockchain-based companies. The politicians in Nevada overall want the blockchain and technology industry to grow and benefit their State.

A Minutes of the Senate Committee On Judiciary record document read, “The bill will help ensure the State keeps pace with technological advancements and provide a legal framework for people using a blockchain to not do so in a legal gray area.”

The bill includes the following legal requirements for county commissioners to follow:

A board of county commissioners shall not: 13 (a) Impose any tax or fee on the use of a blockchain by any 14 person or entity; 15 (b) Require any person or entity to obtain from the board of 16 county commissioners any certificate, license or permit to use a 17 blockchain; or 18 (c) Impose any other requirement relating to the use of a 19 blockchain by any person or entity.

Towards Blockchain Recognition and Acceptance…or not?

These type of bills that seem to be pro-blockchain may be a meaningful positive step toward creating more acceptance for cryptocurrencies. Seeing these kinds of bills are a nice change in tempo, because other bills have demonized crypto for contributing to money laundering schemes and other forms of crime.

For instance, in Florida, an appropriations committee recently passed an anti-money laundering bill to target people who leverage bitcoin to hide finances. Also, Federal senate bill 1241 defines digital currencies as “monetary instruments,” and its intent is to target bitcoin exchanges to intercept criminal activity and undermine cryptocurrency freedom and neutrality.

Nonetheless, pieces of legislation that are bad and good for blockchain technology will continue to crop up in lockstep as politicians decide what is best for their constituency. In the end, crypto-enthusiasts can only hope for the disruptive technology to be shown in a positive light rather than be paraded alongside images of a dark criminal underworld, rife with its hackers and fraudsters and shysters and monsters.

Do you expect to see more anti-blockchain or more positive blockchain legislation in the future? Let us know in the comments below. 

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