New Jersey to restrict NFTs as gifts to public officials

In an update to the state’s bribery- and corruption-prevention laws, the New Jersey General Assembly may soon vote to prevent public officials from receiving NFTs and virtual currency as gifts. The bill was approved by the Science, Innovation, and Technology Committee last week.

Why should we care?
The bill makes clear that New Jersey sees crypto as both an asset and a liability. Assemblywoman Yvonne Lopez, who sponsored the bill, said that cryptocurrency “has utility” but also carries “a great deal of risk for consumers.” Unnamed but implied is that crypto is also a risk for politicians. Without needed updates to reflect the growth of digital assets and currencies, lawmakers can find loopholes in existing ethics laws. The bill is part of a larger effort by New Jersey officials to rein in crypto. The Science, Innovation, and Technology Committee also approved a bill that would require businesses to register with the New Jersey Department of Banking and Insurance if they conduct “a digital asset business activity with or on behalf of a resident.” Businesses would have to provide audited financial statements and comply with AML and anti-terror financing regulations. These two laws symbolize a normalization of crypto-based business—a recognition of their consequences, but also their growing treatment as another financial instrument.