HARRISBURG –Sen. Chris Gebhard’s (R-48) bill to protect users of virtual currency is set for enactment into law following today’s approval by the House of Representatives.
With more individuals taking advantage of using virtual currency as part of their financial portfolio, Senate Bill 202 would create the statutory framework aimed at protecting consumers who utilize this currency option.
Specifically, it would require transmission of virtual currency to be treated similar to money transmission under Pennsylvania’s Money Transmitter Act. As more citizens use virtual currencies, like Bitcoin and Ethereum, the criminal element has increasingly focused on using this platform to evade prosecution. The need for oversight of third-party exchanges was magnified a few years ago, following the collapse of FTX.
According to Gebhard, “By treating virtual currencies the same as traditional money under the MTA, this will ensure individuals can engage with virtual currencies at their own discretion while having safeguards enshrined into law for the consumer.”
Millions of Pennsylvanians are choosing to use virtual currency. Creating a statutory framework to protect users is the first step toward legitimizing these virtual currencies. The bill was amended to apply to money transmitting services that charge individual consumers a fee for use; virtual currency wallets that are owned by individual consumers would not be subject to the bill.
“I appreciate my colleagues’ bipartisan support on this legislation and helping it get to the finish line,” said Gebhard. “As our society continues to make great strides with technological advancements, like the use of virtual currencies, it is important we make sure our laws keep up with those advancements.”
Upon enactment, Pennsylvania would join 26 other states who currently regulate virtual currency under their money transmitter acts.
CONTACT: Alex Gamble