According to a Forbes report on March 15, 2020, Rhode Island’s Representatives, David Place and Black Filippi, have introduced a new bill intended at building regulatory clarity and making the state a haven for bitcoin (BTC) related businesses as well as blockchain innovators.

Rhodes Island Set Sights on Blockchain Technology

In a proposal to produce an enabling environment for cryptocurrency and DLT (distributed ledger technology) based businesses to succeed, two forward-thinking representatives of the Rhode Island General Assembly have proposed a new bill.

Called the Rhode Island Economic Growth Blockchain Act, the bill was formulated by Representatives David Place and Blake Filippi, and it strives to create a responsive framework for fintech and blockchain-focused businesses, thereby significantly advancing the state’s economy in the long run.

As per sources close to the matter, principal aims of the Rhode Island Economic Growth Blockchain Act include serving as an economic growth blockchain act, regulating the sale of hemp, regulating virtual and digital assets, and building depository banks to service crypto-linked businesses.

The bill reads:

“He state of Rhode Island understands that to compete in the 21st-century economy, Rhode Island must offer one of the best businesses environments in the United States for blockchain and tech innovators, while also offering a comprehensive regulatory technology sandbox for these innovators to develop the next generation of digital products and services in Rhode Island.”

Blockchain Sandbox to Be Introduced 

Importantly, the bill intends to boost blockchain adoption in Rhode Island and assure the innovative technology is utilized for tracing and tracking heavily regulated products such as cannabis. Additionally, the bill calls for the production of a DLT advisory council and the development of a blockchain filing system.

 The bill also seems to put in place a Special Purpose Sandbox and a Financial Sandbox that will allow crypto market participants and blockchain innovators to do their business efficiently, without going against surviving state laws.

The Special Purpose Sandbox will witness the establishment of a Special Purpose Depository Institution, which will operate as a bank to businesses in the sandbox, thereby making it more straightforward for crypto-related startups to obtain traditional banking services.

Just like Wyoming, Rhode Island has been doing its best to put itself at the frontline of innovation in recent times.

As reported earlier in March 2019, lawmakers in Rhode Island launched house bill 5595, which is intended to exempt some digital assets from falling under the purview of securities legislation.