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Senate advances bill to create Montana certification for network tokens, bans central bank digital currency use by government
Summary
Senators approved language on second reading to create a registration and certification regime for so‑called network tokens and to prohibit the use of central bank digital currencies by state government. Sponsors said the measure creates regulatory clarity to attract firms; opponents raised policy and technical skepticism.
Senate Bill 265 cleared second reading after a broad discussion on decentralized digital assets and how state regulators should treat new token models. Sponsor Senator Zollnikov described “network tokens” as usage tokens that enable pay‑per‑use models and decentralized services rather than securities, and said the bill creates a certification regime at the securities commissioner’s office so issuers register basic disclosures, functional descriptions and governance details in Montana.
Zollnikov said the bill requires an issuer to file identifying information, an overview of the network’s material aspects, a description of distribution plans, consensus mechanisms and governance structures so the commissioner can approve or deny listing. He and supporters said the framework is intended to give legitimate firms regulatory certainty and discourage scams, while the bill also contains a prohibition on central bank digital currencies (CBDC) for use by state government.
Opponents expressed skepticism about novel technology and the regulatory structure. Senator Hertz said long explanations did not allay his concern about how tokens would function in practice; Senator Newman and others asked technical questions about fees, middleman functions and consumer protections. Sponsor Zollnikov clarified the bill is focused on Montana‑based issuers and allows the securities commissioner to accept, condition or deny applications; he and several supporters argued consumer protections and registration requirements in the bill would allow enforcement against bad actors.
On the recorded second‑reading vote the clerk reported 45 senators voting Aye and 4 voting Nay. Sponsors said they would continue to work with the securities commissioner and stakeholders on the registration details and consumer protections as the measure proceeds.
Discussion focused on three themes: (1) defining and distinguishing network tokens from securities or cryptocurrencies, (2) creating a filing/certification process for issuers with consumer‑protection disclosures, and (3) the policy choice to ban CBDC for state use.
