Substitute House Bill No. 6991 seeks to modernize the definitions and regulations within the state's Money Transmission Act, specifically addressing the evolving landscape of financial technology. The bill repeals Section 36a-596 and introduces new definitions for terms such as "advertise," "authorized delegate," "control," and notably, "digital wallet," which refers to electronic functionalities that store and process payment credentials for consumer transactions. Additionally, the definition of "money transmission" is expanded to include transactions involving digital wallets and mobile applications. Other key insertions include definitions for "virtual currency," "virtual currency wallet," and "virtual currency kiosk," which clarify the nature and usage of digital currencies.

The bill also implements new advertising requirements for licensed money transmitters, mandating the display of their unique identifier on all solicitations and advertisements while prohibiting misleading claims regarding Federal Deposit Insurance Corporation (FDIC) protections for deposited funds. It modifies existing definitions, such as "stored value," to include claims against the issuer and updates terminology from "electronic record" to "electronic or digital record." These changes are designed to enhance clarity and compliance within the regulatory framework, with an effective date set for October 1, 2025, and no anticipated fiscal impact on the state or municipalities.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 194: