Committee passes HB 881 to add virtual currency to money transmission law amid definitional debate

House Bill 881, the Conventon bill, which adds virtual currency to the state’s money transmission business law, was approved by the Commerce Committee after members rejected an amendment that would have exempted certain digital assets from the bill’s definition.

The committee first considered Amendment 1300131 (Diorci), which "adds the definition of digital asset and decentralized to the bill, and then goes on to exempt digital assets from the definition of virtual currency." Representative Yaurci (the amendment sponsor) argued the amendment was necessary to distinguish public, decentralized digital assets like Bitcoin from centrally managed virtual currency, saying, "The two cannot be conflated. They're not alike." Committee leadership urged members to vote against the amendment to maintain alignment with a companion Senate bill; the amendment failed on roll call.

After the amendment’s defeat, members raised concerns about scope and licensure. Representative Scharn asked whether the bill’s licensing requirement could reach individuals using self‑custodied hardware wallets to store and transfer their own digital assets; she asked whether the bill would ‘‘effectively mean that the government is requiring individuals to seek permission to use their own property.’’ Committee staff and leadership later relayed a departmental clarification on the record: "Per the department, self hosted wallets would not be required to be licensed under the bill. Only transmission of virtual currency by a third party for a fee would require licensure." A member noted the clarification was not explicitly in the bill text.

The committee then voted to pass HB 881. The transcript records a roll call sequence and the chair announced "HB881 passes."