We Represent Florida Blockchain

Florida’s Web3 Legislative Update: Preparing For The 2024 Legislative Session

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Florida’s 60-day Legislative Session starts on January 9th, 2024. With that date fast approaching, let’s review all the Bitcoin and web3 bills we are pushing or opposing: Under each bill is a link where you can find the actual bill language and share it.

Bill 1) A Bitcoin Sales Tax Holiday

Also known as SB 0352, this bill allows Floridians to buy goods with Bitcoin without sales tax for two months of the year (June and July).

Since Florida’s State Budget is largely funded by sales tax (as we have no income tax), we want to encourage people to buy goods with Bitcoin. This two-month sales tax holiday is just the start in the long process of user adoption.

Over time we would like to find other ways Floridians can spend Bitcoin in the State of Florida, and be rewarded for doing so by being exempt from taxes.

Bill 2) A Digital Gold Bill

Also known as SB 750, this bill allows electronic representations of gold and silver to be labeled as specie legal tender. This gives the State alternatives to federally controlled money, and the gold and silver do not have to come from the Federal Reserve or Treasury/Mint.

The CFO of Florida can designate what is considered Specie Legal Tender. If digital gold and silver can be considered specie legal tender, what’s the logical next step in redefining legal tender?

Bill 3) Virtual Currency Kiosk Bill

Also known as SB 662, the State of Florida is looking to regulate virtual currency kiosks. Contrary to the beliefs of some, like Elizabeth Warren, virtual currency itself is not responsible for fraud.

However, there is a growing number of romance scams in Florida targeting the elderly, with scammers often using virtual currency kiosks. While kiosks in Florida already have appropriate safeguards, the state seeks additional measures.

We are collaborating with stakeholders to ensure that these regulations meet the State’s goals without burdening the thriving virtual currency kiosk business. Our aim is to protect vulnerable populations while keeping Florida a virtual currency kiosk-friendly state.

Bill 4) Open Source Software/DAO Bill

Also known as SB 882, this bill is very interesting and pushes a few boundaries. We believe that if you are an open-source software entity, like many DAOs are, you should not be subject to the same regulations as traditional centralized entities. Here are a few of the bill’s provisions:

  1. The DAO must have a governance structure and use decision-making processes that are publicly identifiable and transparent.
  2. The DAO’s activities must primarily relate to the development, maintenance, or support of open-source software.
  3. In the event of a conflict between state law and the governance procedures of a DAO doing business in this state, the governance procedures of the DAO shall prevail and supersede conflicting laws to the extent of the conflict.

Bill 5) Digital Asset Trusts

Also known as SB 914, this bill relates to the regulation of digital trust business, especially in the context of virtual currency activities. Key points include:

  • Definition of Digital Trust Business: The bill defines “digital trust business” as activities involving virtual currency in various capacities.
  • Legislative Intent: The bill expresses the Florida Legislature’s intent to authorize state banks and trust companies to engage in digital trust business, emphasizing the need for thorough risk assessments.
  • Stablecoin Regulations: Specific provisions for stablecoin regulation are included, focusing on redemption, asset backing, third-party verification, and holder rights protection.

As you can see, it is going to be a very busy session for us! If you would like further information on any of the above bills, or if any of these bills have a positive or negative impact on your business, we want to know.

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