Bill > HB883

This bill introduces the Digital Asset Regulation Act, which establishes comprehensive guidelines for virtual currency lenders operating in Pennsylvania. The legislation requires virtual currency lenders to notify the Department of Banking and Securities at least 90 days before conducting business, providing detailed information about their operations and compliance with federal and state laws. The bill mandates that virtual currency lenders maintain 100% collateral in money or cash equivalents for all digital consumer assets, which can be adjusted based on market prices. In the event of a default, fraud, or technical failure that causes a client to lose access to their virtual currency or funds, the lender must use the collateral to reimburse the client. The bill also requires lenders to segregate client funds and digital assets from their own, ensuring a clear separation of resources. Virtual currency lenders must sign agreements with clients detailing these collateral requirements. The legislation imposes escalating financial penalties for non-compliance, starting at $5,000 for the first violation and potentially increasing to $20,000 for subsequent violations, with the possibility of being prohibited from operating in Pennsylvania after three violations. The Department of Banking and Securities is tasked with creating regulations to implement and enforce the act, which will take effect 60 days after passage.

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https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=883