On January 11, 2019, the Wyoming State Legislature passed two bills relating to cryptocurrency. The first, bill 62, defined blockchain tokens as personal property and the second, bill 57, facilitates the creation of a sandbox to encourage the growth of fintech firms.
Blockchain Tokens Defined as Personal Property According to New Wyoming Bills
One of the factors that need to be put in place for blockchain and Cryptocurrency to thrive is favorable regulations. Places like Malta have recognized this and have made their regulations very favorable for blockchain which has attracted dozens of blockchain firms.
The US state of Wyoming seems to be following this route as their state legislature has passed two new bills that create favorable regulations for blockchain and Cryptocurrency.
The bills, House Bill 62 and House Bill 57, were passed on January 11, 2019.
Bill 62 – Blockchain Tokens as Personal Property
This bill is titled ‘Wyoming Utility Token Act-property amendments’ and is very significant as t establishes and clarified the status of blockchain tokens. According to the published document, open blockchain tokens with specified consumptive characteristics are defined as intangible personal property.
By virtue of this, they no longer need exemptions from federal securities laws.
The bill goes into more detail about this, “The open blockchain tokens governed by this act do not constitute securities because a person who is sold a consumptive open blockchain token cannot receive a cash payment or share of profits from a developer or business, but will instead receive a fixed amount of consumable services, content or property.”
Bill 57 – Financial Sandbox
This bill is called the Financial technology sandbox, which focuses on the creation of a supervised testing environment, called a sandbox.
The purpose of these sandboxes is to help facilitate the creation of waivers for certain regulations that have been found to delay or disturb innovation.
Wyoming is actively trying to attract more fintech businesses and this bill is a great way to start.
As progressive as these two new bills are, they are not the first that has been passed by the Wyoming government. In early 2018, the Wyoming Senate and House of Representatives passed House Bill 70 which created more lenient ways regarding tokens that were offered via ICOs in the state.
The Wyoming Money Transmitter Act was also passed in February 2018. This Act exempted Cryptocurrency from state property tax.
The Power of Legislation
The benefits of blockchain technology can no longer be argued or denied. Governments all over the world are embracing its use and reaping the rewards.
One of the ways of doing so is by creating laws that allow the industry to thrive. Ohio has begun accepting Cryptocurrency as a form of tax and Wyoming has been steadily introducing laws that favor the crypto industry.
Only time will tell if other states will follow their lead.