Bill Text: NY S09410 | 2021-2022 | General Assembly | Introduced

---

Bill Title: Requires certain disclosures by a developer of virtual tokens in advertisements involving such virtual tokens; provides restrictions concerning advertising.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-05-25 - REFERRED TO BANKS [S09410 Detail]

Download: New_York-2021-S09410-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          9410

                    IN SENATE

                                      May 25, 2022
                                       ___________

        Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks

        AN ACT to amend the financial services law,  in  relation  to  requiring
          certain disclosures in advertisements involving virtual tokens

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision (a) of section 104 of  the  financial  services
     2  law is amended by adding a new paragraph 6 to read as follows:
     3    (6) "Virtual token" shall mean any interchangeable or non-interchange-
     4  able  unit  of  data that is stored on any blockchain ledger which shall
     5  include, among other digital units that the superintendent determines to
     6  be virtual tokens in accordance with this definition,  cryptocurrencies,
     7  virtual  currencies, digital assets and digital tokens, whether fungible
     8  or non-fungible. Virtual tokens shall not be construed to include any of
     9  the following:
    10    (A) digital units that: (i) are used solely within online gaming plat-
    11  forms; (ii) have no market or application outside of those gaming  plat-
    12  forms; (iii) cannot be converted into, or redeemed for, fiat currency or
    13  virtual  currency;  and (iv) may or may not be redeemable for real-world
    14  goods, services, discounts, or purchases;
    15    (B) digital units  that  can  be  redeemed  for  goods,  services,  or
    16  purchases  as  part  of  a customer affinity or rewards program with the
    17  issuer and/or other designated merchants or can be redeemed for  digital
    18  units  in  another  customer  affinity or rewards program, but cannot be
    19  converted into, or redeemed for, fiat currency or other virtual  curren-
    20  cy; or
    21    (C) digital units used as part of prepaid cards.
    22    § 2. The financial services law is amended by adding a new section 410
    23  to read as follows:
    24    §  410.  Restrictions concerning advertising.  (a) No person shall, in
    25  any manner, advertise, print, display, publish,  distribute,  or  broad-
    26  cast,   or  cause  or  permit  to  be  advertised,  printed,  displayed,
    27  published, distributed, or broadcasted, any statement or  representation
    28  with  regard  to  any virtual token for consideration without disclosing

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13980-06-2
        S. 9410                             2

     1  the amount of consideration, whether  past  or  prospective,  direct  or
     2  indirect, and the nature thereof.
     3    (b)  No  person  shall,  in  any  manner,  advertise,  print, display,
     4  publish, distribute, or broadcast, or cause or permit to be  advertised,
     5  printed,  displayed,  published, distributed, or broadcasted, any state-
     6  ment or representation with regard to any virtual token or other  finan-
     7  cial  product  or service if such statement or representation is, in any
     8  manner, false, misleading or deceptive.
     9    (c) For the purposes of this section and without limiting subdivisions
    10  (a) and (b) of this section, a  statement  or  representation  shall  be
    11  false,  misleading  and  deceptive  if it states or implies, directly or
    12  indirectly, that a person is authorized legally to offer or  provide  in
    13  New  York  state or to New York state residents a virtual token or other
    14  financial product or service, and such person is not so authorized.
    15    § 3. This act shall take effect immediately.