The "Rhode Island Economic Growth Blockchain Act" establishes a regulatory framework for blockchain technology and digital assets in the state. It creates a regulatory sandbox that allows innovators to test new financial products and services under flexible conditions, thereby fostering technological advancements and stimulating economic activity. The act introduces special purpose depository institutions (SPDIs) designed to meet the unique banking needs of blockchain innovators, providing secure banking services for blockchain-related activities.

Additionally, the legislation establishes a Rhode Island Blockchain Technology Advisory Council to support research and promote entrepreneurial development. Key provisions include the requirement for applicants to undergo criminal history background checks, maintain records for five years, and provide consumer disclosures regarding product risks. The act outlines the formation and operation of SPDIs, including capital requirements, compliance with federal laws, and the prohibition of lending activities. It mandates regular examinations of these institutions and includes penalties for non-compliance, ensuring a structured and regulated environment that promotes innovation while safeguarding consumer protection and regulatory compliance. The act takes effect upon passage.