HARRISBURG – Sen. Chris Gebhard’s (R-48) bill to protect users of virtual currency by requiring its transmission to be treated similarly to money transmission under the Money Transmitter Act (MTA) was approved unanimously today by the Senate.
Technological advancements affect every aspect of society including how individuals choose to bank, purchase goods and hold wealth. Millions of Pennsylvanians are choosing to use virtual currency. Creating a statutory framework to protect users is the first step toward legitimizing these virtual currencies.
The bill was amended to apply to money transmitting services that charge individual consumers a fee for use; virtual currency wallets that are owned by individual consumers would not be subject to the bill.
“As more citizens use virtual currencies, like Bitcoin and Ethereum, the criminal element has increasingly focused on using this platform to evade prosecution,” Gebhard said.
Enactment of this bill would build off Act 41 of 2024 and provide the first statutory regulation aimed at protecting consumers in the commonwealth who use and hold virtual currency. Currently, 27 states regulate virtual currency under their respective money transmitter acts.
According to Gebhard, “By treating virtual currencies the same as traditional money under the MTA, my bill would give law enforcement the ability to prosecute scammers, fraudsters and organized crime – or bad actors such as FTX Trading Ltd.”
CONTACT: Alex Gamble