North Carolina Governor Pat McCrory has ratified a new blockchain-friendly law, marking a significant step forward for the regulation of cryptocurrencies in the U.S. Known as the North Carolina Money Transmitter Act, it follows work on previous state bills and about sixteen months of deliberations between the North Carolina Commissioner of Banks, the General Assembly and the Chamber of Digital Commerce.

The Act updates the American state’s existing laws to include a defined “virtual currency” term, and includes clarification as to which activity using virtual currency triggers the Act. This is said to ensure that miners and blockchain software providers including smart contracts platforms, colored coins, smart property, multi-signature software, and non-hosted, non-custodial wallets will not require a license.

This approach starkly contrasts with New York’s separate licensing regime, and supporters say it will hopefully provide a precedent for other jurisdictions in the U.S that wish to attract blockchain related startups and businesses.

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“It’s been a long journey, however the benefits for both business and consumers in North Carolina won’t take nearly as long to surface,” said Perianne Boring, founder and President of the Chamber of Digital Commerce. “North Carolina anticipated key issues, and developed a reasonable solution to address each concern. This has paved the way for other states to realize and embrace the incredible potential of these technologies.”

“We applaud the North Carolina Commissioner of Banks for its thoughtful engagement and approach towards making this bill a reality,” added Boring.