Hawaii Ends Crypto Regulatory Limbo, Leaving Regulation to Federal Government
• Hawaii had attempted to regulate crypto companies as money transmitters, requiring them to hold cash reserves equal to crypto holdings, making business impossible.
• A regulatory sandbox was created to allow crypto companies to operate without regulation and provide data, while Hawaii developed a crypto license.
• Multiple bills were introduced to open Hawaii to crypto or extend the regulatory sandbox, but all failed to pass.
• The regulatory sandbox was extended multiple times while legislative solutions continued to fail.
• Hawaii has now ended the regulatory sandbox pilot, leaving crypto regulation entirely up to the federal government.