- The report’s final version was approved by the Commission on 21 December 2022.
- The Commission reports New Hampshire’s crypto regulatory stance as “unclear” and “unsatisfactory.”
On January 19, New Hampshire Governor Chris Sununu announced the release of the Governor’s Commission’s final report on cryptocurrencies and digital assets. The “comprehensive” and “timely” crypto report compiled the Commission’s findings and recommendations on the progress of blockchain technologies and the state’s legal stance.
In the report, the Commission expressed dissatisfaction with the state’s “unclear” and “highly uncertain” crypto regulatory framework. Thus, it demands a “strong call to action” by policymakers with respect to crypto and blockchain regulations.
Governor’s Crypto Commission concluded:
“New Hampshire should take strong pro-active and public steps to build a better legal infrastructure for sound development of Blockchain technologies and its applications.”
By executive order, Governor Chris Sununu established this Commission in February 2022 as a special task force to investigate the current status of the cryptocurrency and digital asset industry and the underpinning technologies. Significantly, the Commission’s core purpose was to recommend findings regarding the role of the state’s legal system in the “innovations involving Blockchain technologies.”
Significant Highlights of the Crypto Report
Clearer degrees of decentralization, “sound laws and regulations” on crypto assets, and enhanced “Crypto-asset literacy” were the prime requirements of the crypto commission. Notably, it acknowledges blockchain technologies as early innovations and potential tools to transform human societies and economies.
The report also portrayed the Commission’s criticisms of the wavering degrees of decentralization in the blockchain-powered ecosystem. The regulators regarded bad actors at centralized firms like Sam Bankman-Fried as bugs in the financial system. The turmoil caused by the FTX collapse compels the Commission to urge the New Hampshire government in executing clearer crypto laws and regulations to safeguard its citizens and financial hub.
Governor’s Commission kept forth twelve recommendations to resolve the crypto-related matters. Firstly, it emphasized the need for a state legal enterprise law for Decentralized Autonomous Organizations (DAOs). Secondly, it recommended the development of a Blockchain Dispute Docket within the state’s judicial system for solving blockchain-related business and commercial disputes. Thirdly, a demand for a specialized Uniform Commercial Code (UCC) as the rulebook for transactions related to digital assets including Cryptocurrencies and NFTs is made.
To highlight a few more – the Commission also urged strengthening securities laws and implementing tax laws on blockchain assets and tokens. Surprisingly, the Commission recognizes the benefits that blockchain or Bitcoin mining can potentially offer to electricity generation and renewable energy projects. It even recommended that policymakers explore and bridge projects with blockchain mining businesses.
