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Montana hearing on network-token law centers on regulatory clarity, economic promises and consumer questions
Summary
SB 265 would create a registration pathway and disclosure rules for "network tokens," ban certain central bank digital currencies, and aim to attract decentralized-infrastructure businesses; proponents argued the change would create jobs and legal certainty while committee members pressed on energy use, rural benefits and safeguards against bad actors.
Senator Daniel Zolnikoff opened the SB 265 hearing by describing the bills dual goals: provide a clear regulatory path for network tokens and related digital-asset projects, and attract businesses and jobs to Montana. He said prior state steps had created precedents and that a gap in clarity had driven some firms offshore.
"This bill sets a regulatory framework for this concept called network tokens," Zolnikoff said, explaining the draft would require companies to register, disclose material aspects, and provide contact information so that regulators could hold them accountable while offering regulatory certainty to legitimate firms.
A long set of proponents testified in support, including Devon James (Open Index Protocol/Web3 Working Group), Mark Bridal (co-founder of Aether), Scott Burke (Orbital Beam/Deepin Daily), Eric Peterson (Satoshi Action Fund) and Hans Rempel (Diode/Exosite). They described use cases ranging from decentralized GPU infrastructure for AI, to blockchain-based file storage and farm-to-table supply chains, and emphasized that "network tokens" are designed as access or service credits, not securities.
"This legislation provides exactly that clarity," said Devon James. "It recognizes that network tokens are not securities like stocks or bonds. They're more like digital keys, access credentials that power decentralized systems."
Witnesses and the sponsor emphasized potential economic benefits: attracting headquarters, high-paying engineering jobs, and new infrastructure projects. Mark Bridal described Aethers business model and said the company had raised funding and employed hundreds globally, and proponents argued that Montana could win a "first-mover" advantage.
Committee members pressed on risks and specifics. Rep. Joy and others asked what assets back token valuations and how quickly token prices can change; proponents answered that marketplace supply and demand determines token value and that tokens confer access to services that create practical value. Rep. Griffith and others raised energy and broadband questions: whether tokenized networks would increase local energy demand and whether rural areas would see economic benefit. Proponents said use-cases vary; some network designs can reduce energy use or leverage local broadband and Starlink-like connections to fill gaps.
Members also raised governance questions: who enforces compliance, how to prevent tokens being used to shield assets from legal obligations, and whether the bills cap and registration process were sufficient. Sponsor Zolnikoff and proponents repeatedly said the bill aims to give regulators clarity so they can pursue bad actors and provide oversight of legitimate businesses.
The panel concluded the hearing after extended testimony and questions. The committee did not take a vote during the hearing.
