Wyoming, a western U.S. state has passed two bills related to Blockchain and cryptocurrency. The state legislature passed the bills whereas Caitlin Long, the president of the Wyoming Blockchain Coalition made the announcement in two separate tweets on January 10 and January 11.
Bills to Regulate the Cryptocurrency Industry
The said documents are House Bill 62 and House Bill 57, and they are both focused on regulating the industry to provide an environment for them to thrive. House Bill 62, known as Wyoming Utility Token Act-property amendments will be effective from July 1, 2019. The bill states that:
Blockchain tokens with specified consumptive characteristics are intangible personal property and not subject to a securities exemption.
According to the document, tokens are classified as an “intangible personal property” because they are “consumptive tokens” which can only be exchanged for a product or service. As such, they can neither be exchanged for cash nor received as part of the funds generated by the developer of the token.
Notice of Intent Must Be Filed Before the Sale of Cryptocurrencies
House Bill 62 also states that before a cryptocurrency is offered for sale, whoever is offering its sale must electronically fill a form as a notice of intent. The notice must be submitted to the secretary of state for filing. In the same vein, the form must contain information such as the name and contact information of the developer, seller, or registered agent.
The second bill is called “Financial technology sandbox”, and the House committee passed it anonymously. This one focuses on creating flexible regulations to test Fintech products and services to encourage their innovation in the state. According to the bill, there have been advancements in Financial technology, but the current regulation has not provided an environment for it to thrive.
Banks to Offer Financial Services to Blockchain Companies
In December, Wyoming also passed a bill known as “Special purpose depository banks”. The bill which was passed unanimously allows Banks in the area to offer financial service to Blockchain companies. The document had stated that the rapid innovation of the industry and massive adoption of virtual currencies made it difficult for companies to access reliable banking services.
Aside from Wyoming, other states in the US that are advocating for the Blockchain include New York, West Virginia, and Ohio. New York for instance, recently launched a Blockchain center in Manhattan for the training of software developers and the public. Also, West Virginia used a Blockchain-based application to conduct its general elections in November last year.