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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0759*
SENATE BILL 759
I1, C1 6lr1041
CF HB 859
By: Senators Watson, Ready, and West
Introduced and read first time: February 6, 2026
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Financial Institutions – Digital Assets and Digital Asset Staking – Regulation 2
(Maryland Financial Innovation Act of 2026) 3
FOR the purpose of prohibiting certain regulation of certain activities involving digital 4
assets by an agency or other instrumentality of the State or a political subdivision of 5
the State; clarifying that the provision of digital asset staking as a service is excluded 6
from a certain definition and certain filing and registration requirements under the 7
Maryland Securities Act; and generally relating to digital asset regulation. 8
BY adding to 9
Article – Financial Institutions 10
Section 12–1301 through 12–1304 to be under the new subtitle “Subtitle 13. Digital 11
Assets and Digital Asset Staking” 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2025 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Financial Institutions 17
SUBTITLE 13. DIGITAL ASSETS AND DIGITAL ASSET STAKING. 18
12–1301. 19
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 20
INDICATED. 21
(B) “BLOCKCHAIN” MEANS DATA THAT IS: 22
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(1) SHARED ACROSS A PEER –TO–PEER NETWORK TO CREA TE A 1
LEDGER OF VERIFIED T RANSACTIONS AND OTHE R INFORMATION , LINKED 2
TOGETHER USING CRYPTOGRAPHY T O MAINTAIN THE INTEG RITY OF THE LEDGER 3
AND TO EXECUTE OTHER FUNCTIONS; AND 4
(2) DISTRIBUTED AMONG NET WORK PARTICIPANTS IN AN 5
AUTOMATED FASHION TO CONCURRENTLY UPDATE NETWORK PARTICIPANTS ON 6
THE STATE OF THE LEDGER AND OTHER FUNCTIONS. 7
(C) “BLOCKCHAIN PROTOCOL” MEANS A DECENTRALIZED PROTOCOL THAT 8
IS DEPLOYED TO A BLOCKCHAIN. 9
(D) “DECENTRALIZED PROTOCO L” MEANS AUTONOMOUS COM PUTER 10
SOFTWARE EXECUTED WI THOUT HUMAN INTERVEN TION ACCORDING TO RU LES 11
ALTERED BY A PREDETE RMINED MECHANISM TO FACILITATE THE TRANS FER OF 12
DATA TO BE BROADCAST TO NODES. 13
(E) “DIGITAL ASSET ” MEANS A VIRTUAL CURR ENCY INCLUDING 14
CRYPTOCURRENCY, STABLECOINS, FUNGIBLE TOKENS, NONFUNGIBLE TOKENS, AND 15
OTHER DIGITAL REPRES ENTATIONS OF VALUE U SED AS A MEDIUM OF E XCHANGE, 16
UNIT OF ACCOUNT, OR STORE OF VALUE. 17
(F) “HARDWARE WALLET ” MEANS A PHYSICAL DEV ICE, AND ITS 18
ASSOCIATED KEYS, THAT: 19
(1) IS NOT CONTINUOUSLY CONNECTED TO THE INTERNET; AND 20
(2) ALLOWS A PERSON TO SE CURE, TRANSFER, AND RETAIN 21
INDEPENDENT CONTROL OVER A DIGITAL ASSET. 22
(G) (1) “NODE” MEANS SOFTWARE RUN ON A COMPUTER THAT: 23
(I) COMMUNICATES WITH OTH ER DEVICES OR PARTIC IPANTS 24
ON A BLOCKCHAIN TO MAINTAIN CONSENSUS AND INTEGRITY OF THE BLOCKCHAIN; 25
(II) CREATES AND VALIDATES DATA ON A BLOCKCHAIN; OR 26
(III) CONTAINS AND UPDATES A COPY OF A BLOCKCHAIN. 27
(2) “NODE” DOES NOT INCLUDE COM PUTER SOFTWARE THAT 28
EXERCISES DISCRETION OVER A TRANSACTION I NITIATED BY THE END USER OF A 29
BLOCKCHAIN PROTOCOL. 30
SENATE BILL 759 3
(H) “SELF–HOSTED WALLET ” MEANS A DIGITAL INTE RFACE, AND ITS 1
ASSOCIATED KEYS, THAT ALLOWS A PERSON TO SECURE, TRANSFER, AND RETAIN 2
INDEPENDENT CONTROL OVER A DIGITAL ASSET. 3
(I) “STAKING” MEANS COMMITTING A DIGITAL ASSET TO A BLOCKCHAIN TO 4
PARTICIPATE IN THE BLOCKCHAIN’S OPERATIONS. 5
(J) (1) “STAKING AS A SERVICE” MEANS THE PROVISION OF TECHNICAL 6
OR CUSTODIAL STAKING SERVICES BY A SERVICE PROVIDE R, INCLUDING THE 7
OPERATION OF A NODE AND THE INFRASTRUCTU RE NECESSARY TO FACI LITATE 8
PARTICIPATION IN A BLOCKCHAIN BY THE SERVICE PROVIDER ON BEHALF OF THE 9
PERSON THAT OWNS THE DIGITAL ASSET BEING STAKED. 10
(2) “STAKING AS A SERVICE” DOES NOT INCLUDE THE PROVISION OF 11
SERVICES DESIGNED TO GENERATE INVESTMENT RETURNS OR OTHER INCOME ON 12
BEHALF OF THE PERSON THAT OWNS THE DIGITA L ASSET BEING STAKED OTHER 13
THAN REWARDS ISSUED BY A BLOCKCHAIN. 14
(K) “VALIDATION” MEANS THE PROCESS BY WHICH A BLOCKCHAIN 15
PROTOCOL, THROUGH ITS CONSENSUS MECHANISM, CONFIRMS THE AUTHENTICITY 16
AND ACCURACY OF TRAN SACTIONS OR OTHER DA TA ENTRIES THAT ARE THEN 17
RECORDED ON A BLOCKCHAIN. 18
(L) “VIRTUAL CURRENCY” HAS THE MEANING STATED IN § 12–1201 OF THIS 19
TITLE. 20
12–1302. 21
(A) AN AGENCY OR OTHER IN STRUMENTALITY OF THE STATE OR A 22
POLITICAL SUBDIVISIO N OF THE STATE MAY NOT PROHIBIT, RESTRICT, OR 23
OTHERWISE IMPAIR THE ABILITY OF A PERSON IN THE STATE TO: 24
(1) ACCEPT A DIGITAL ASSET AS A METHOD OF PAYMENT FOR A GOOD 25
OR SERVICE; 26
(2) TAKE CUSTODY OF A DIG ITAL ASSET USING A S ELF–HOSTED 27
WALLET OR HARDWARE WALLET; 28
(3) OPERATE A NODE FOR TH E PURPOSE OF CONNECT ING TO A 29
BLOCKCHAIN AND PARTICIPATING IN A BLOCKCHAIN; 30
(4) DEVELOP SOFTWARE TO DEPLOY ON A BLOCKCHAIN; 31
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(5) TRANSFER DIGITAL ASSE TS TO ANOTHER PERSON USING A 1
BLOCKCHAIN; OR 2
(6) PARTICIPATE IN STAKING ON A BLOCKCHAIN. 3
(B) SUBSECTION (A) OF THIS SECTION PREE MPTS ANY EXISTING 4
REGULATION, RULE, OR ORDINANCE THAT CONFLICTS WITH THIS SECTION. 5
12–1303. 6
AN OFFER TO PROVIDE OR THE PROVISION OF DIGITAL ASSET STAKING AS A 7
SERVICE DOES NOT CONSTITUTE THE OFFER OF OR THE SALE OF AN INVESTMENT 8
CONTRACT OR OTHER SE CURITY UNDER THE MARYLAND SECURITIES ACT AND IS 9
NOT SUBJECT TO § 11–205 OR § 11–501 OF THE CORPORATIONS AND ASSOCIATIONS 10
ARTICLE. 11
12–1304. 12
THIS SUBTITLE MAY NOT BE INTERPRETED TO ABROGATE OR RESTRICT THE 13
AUTHORITY OF: 14
(1) THE COMMISSIONER TO REGULATE DIGITAL ASSETS UNDER THE 15
MARYLAND MONEY TRANSMISSION ACT; OR 16
(2) THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF 17
THE ATTORNEY GENERAL TO ENFORCE THE MARYLAND CONSUMER PROTECTION 18
ACT. 19
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 20
Assembly that § 12–1303 of the Financial Institutions Article, as enacted by Section 1 of 21
this Act, shall be construed as a clarification of existing law. 22
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 23
1, 2026. 24