Earlier this month, passing a new bill, State of Montana exempts Utility tokens from the state securities. The bill has its sign of approval from Montana’s Governor. This bill was initiated in February 2019. It will implement starting from July 1st.
As per the new law, a utility token is a digital unit that is created and recorded on the blockchain. It only enables owners to access a good or service which the issuer provides. It won’t entrust the holder with any ownership interest or equity interest in the issuer.
Further, the bill states that using utility tokens for investment purpose is not permissible. The tokens use must limit to give or receive goods & services. Though Montana exempts Utility Tokens, the issuers still have to stick to regulations. They have to interact with the securities commissioner and file a notice if they have plans to sell tokens.