The U.S State of Montana has passed the House bill 584, titled “Generally revise laws relating to cryptocurrency”, which recognises utility tokens and exempts them from state securities. Under the new law, a utility token is defined as a digital unit that is created, recorded on blockchain, capable of being exchanged without a third party, and issued to enable owners to access a good or service delivered by the issuer “without vesting the holder with any ownership interest or equity interest in the issuer.” For such a token to be exempt from securities laws, the issuers must not market the token as an investment or for speculation. The token’s purpose must rather be “primarily consumptive” i.e. used to provide or receive goods, services or content.

Download the document