Crypto advocates are seeing significant victories across states from Louisiana to New Hampshire, showcasing a strong bipartisan push for clear and consistent digital asset regulation. As state legislatures settle into their summer recess, the momentum behind digital asset legislation continues to grow, which could influence many congressional and down-ballot races this fall.
Surge in State-Level Legislation
In 2024, over 30 bills impacting digital assets have been enacted at the state level, more than doubling the number from last year. This progress is evident in both Republican and Democratic states, reflecting a broad appetite for comprehensive crypto regulation.
Key Developments in New England
June has been particularly active for state crypto policy in New England, a region with several important races and various bills addressing critical areas such as custody requirements, self-hosted wallets, unclaimed property, crypto mining, and central bank digital currencies (CBDCs).
New Hampshire, a swing state, is expanding its regulatory framework to include certain digital-asset activities. The state legislature is finalizing HB 1241, which extends its money-transmitter laws to cover “virtual currency” transmission.
Maine, another potential swing state, advanced a digital asset update to its MTL regulations. However, the update includes problematic provisions for self-hosted wallets, which policymakers will need to address during implementation.
Massachusetts is advancing crypto legislation with House Bill 1641, aiming to modernize fiduciaries’ management of digital assets. The bill aligns with similar legislation in Oklahoma and California. Additionally, the city of Quincy issued the first municipal blockchain-based bond for $10 million with J.P. Morgan, showcasing local progress.
Rhode Island saw Governor Dan McKee sign SB 2803 into law, incorporating minimum capital requirements and limits on investments for “currency transmitters,” including crypto exchanges.
Legislative Advances in Other States
Louisiana passed HB 488, encouraging Bitcoin mining and prohibiting CBDCs. Governor Jeff Landry signed the bill, which received bipartisan support for championing states’ rights in crypto policy.
North Carolina achieved a significant win on June 27 when HB 690 passed the state Senate. The bill prohibits CBDC payments and North Carolina’s participation in the Federal Reserve’s CBDC tests, now awaiting the governor’s consideration.
Implications for the Upcoming Election
States are increasingly shaping the regulatory environment for digital assets, providing clarity and security for businesses and consumers. This growth in legislative activity signals that policymakers are responding to their constituents, with important implications for the November election.
More than 50 million Americans own crypto, and in swing states with tight races, these crypto swing voters could significantly impact the outcomes. Voters recognize the United States is at a pivotal point regarding leadership on Web3 and do not want to cede this frontier to global competitors. Candidates supporting clear regulatory frameworks and advancing new technology could win close races nationwide. June’s state-level activity proves that policy leadership can emerge from anywhere in the country and from either political party.
