The New Jersey Senate is reportedly considering the approval of a new bill, dedicated to the design of a new, mandatory licensing framework, applied for all crypto firms operational locally. 

Specifically, the new Senate bill, surfaced on November 5th and alternatively referred to as “Digital Asset and Blockchain Technology Act”, reportedly sees the Democratic Party senator as its sponsor, for New Jersey’s 35th Legislative District, Nellie Pou. 

S3132 will now reportedly need a referral to the Senate Commerce Committee, following the previously rolled out of a similar legislation, (to New Jersey’s General Assembly) in early 2020. 

The bill reportedly looks to make it mandatory for all establishments associated with crypto to have obtained a license already, or at the minimum finalized the submission of a license application, so as to carry out their business activities, with, or on behalf of, a resident of the state.

Consequently, crypto asset activities will reportedly be considered legal across New Jersey, provided that all parties associated with the activities have already possessed licences, granted in a different state with which New Jersey has a reciprocity agreement.

The New Jersey license for crypto businesses will reportedly provide the authority to carry out numerous acts, nominally issuing digital assets, offering digital asset exchange services, borrowing and lending digital assets, and storing, holding, or maintaining custody of digital assets on behalf of others.

The latter licensing requirement will reportedly not apply for establishments that have already been functioning as regulated custodians across the US, nominally banks, trusts and broker-dealers.