Wyoming lawmakers have introduced a bill on January 18. The bill would grant corporations to assign certificate cryptocurrencies instead of stock certificates using distributed ledger technology (DLT).
The bill proposes an amendment to pass the issuance of tokenized stock-certificates in place of paper-based certificates.
The new bill classifies digital assets into three categories; like digital securities, digital assets, and most importantly, virtual currencies which provide cryptocurrencies the equal treatment as money within the state.
This classification of virtual assets is essential for the promotion of cryptocurrencies as they still predominantly operate in regulatory grey areas in the other states of US.
The bill further defines ‘Virtual currency’ as a digital asset that is:
a.) Used as a medium of exchange, a unit of account or store of value
b.) Not recognized as legal tender by the United States government.
Caitlin Long, former chairman & president at Symbiont.io shared the news on Twitter that
“This is long & info-packed, so buckle in. My native state is about to do bigger things for blockchain, and the sector is about to pay Wyoming back big-time.”
According to the bill, A bank may render custodial services for digital assets uniform with this section upon providing sixty days (60) written notice to the commissioner. The provisions of this section are increasing and not exclusive as an optional framework for enhanced supervision of digital asset custody.
If a bank chooses to provide custodial services for digital assets, it shall comply with all provisions of this section.
Recently, Wyoming had passed the Bill HB0057, titled ‘Financial Technology Sandbox.’ The Bill HB0057 renders a managed, secure testing environment for corporations wanting to experiment and develop blockchain and crypto-related businesses.
Charles Hoskinson, CEO at Input Output HK posted on Twitter that ‘Wyoming is the Crypto Frontier.’
As per the new bill, cryptocurrencies and other digital assets now have the equal legal status as money under commercial law. Blockchain and crypto related businesses exploring precise legal status may find the rules under Wyoming’s new legislation.
It is indeed a huge leap forward, and we can expect an increase in the number of blockchain and crypto-related firms establishing in Wyoming.
Will the other states of US follow Wyoming’s footsteps in formulating blockchain law? Share your thoughts in the comments.