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Wyoming Sets Precedent Creating Asset Class For Crypto

The State of Wyoming has now created a new class of assets in defining cryptocurrency as “Utility Tokens”, reports Forbes March 13.

As previously reported by CBNN, the Wyoming state legislature passed House Bill 70 on March 6th, which exempts cryptocurrencies from state securities regulations.

The bill was signed into law by Governor Matt Mead on March 8.

This new law excludes sellers and developers of tokens from the state securities laws under condition they meet a certain number of prerequisites, essentially that they must be used as a token for the exchange of goods and services and must not be marketed as an “investment”.

The Co-founder of the Wyoming Blockchain Coalition Caitlin Long commented on this important precedent set by the new law stating:

“Wyoming is the first elected body to define a utility token as a new type of asset class different from a commodity or security. This has been a ‘hot topic’ in Washington D.C. recently, as the SEC considers cryptocurrencies to be securities, FinCEN says they’re money, and then the CFTC views them as commodities. However now you have a state coming out and specifically defining utility tokens as a new form of property, and property is generally under the authority of state law.”Cryptocurrency

Caitlin Long as well as other members of the coalition believe that the new precedent may leave the framework for Washington D.C at large and will approach cryptocurrency regulation in the near future.

House Bill 70 is 1 of 5 bills that have been turned into law in the state of Wyoming recently in order to boost Blockchain businesses in the state. House Bill 19 amended the state’s money transmission laws that had previously hindered exchanges from efficiently operating within the state. For example, Coinbase and two additional exchanges actually pulled out of the state of Wyoming in the year 2015.

The remaining three items of legislation, all of which were introduced by Caitlin Long, aim to make Wyoming a lot more competitive in attracting new cryptocurrency business.

House Bill 101 authorizes Wyoming corporations to create Blockchains to store records as well as the use of a network to identify shareholders, and thus the acceptance of the shareholder votes.

House Bill 126 allows the creation of “series L.L.Cs” that are favorable to decentralized protocols as it enables Limited Liability Corporations to establish a compartmentalized series of members and managers, transferable interests/assets, and the distribution to members.

Senate Bill 111 exempts cryptocurrency from Wyoming state property taxes.

In speaking to CryptoBuzz News Network, Governor Mead later mentioned the proactive steps the state has begun taking to turn Wyoming into, “a really big tech state” including the establishment of the ENDOW Executive Council(Economically Needed Diversity Options for Wyoming).

Olé Crypto,

CBNN

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