Bill > A00391

This bill introduces new regulations for advertising virtual tokens in New York, requiring developers and advertisers to provide clear and transparent disclosures about the financial considerations associated with these digital assets. Specifically, the bill mandates that any advertisement for a virtual token must disclose the full amount and nature of both past and prospective direct or indirect financial considerations. The bill prohibits false, misleading, or deceptive statements about virtual tokens, including claims of legal authorization to offer such tokens in New York when such authorization does not exist. The legislation defines "virtual token" broadly to include cryptocurrencies, digital assets, and digital tokens stored on blockchain ledgers, while explicitly excluding certain digital units used in gaming platforms, customer rewards programs, and prepaid cards. The bill aims to protect consumers by ensuring more transparent and honest marketing practices in the emerging digital token marketplace, with provisions that give the superintendent of financial services authority to determine what constitutes a virtual token. The regulations will apply to all forms of advertising, including print, digital, broadcast, and distribution channels, with the goal of preventing potential financial fraud and misrepresentation in the virtual token industry.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A391