Crypto-Friendly Wyoming Introduces Bill to Tokenize Stock Certificates
House lawmakers in Wyoming just filed a new bill that would allow corporations to issue certificate tokens instead of traditional stock certificates.
House Bill HB0185 was introduced yesterday, and is sponsored by four Representatives and two Senators.
According to the legislation,
“The articles of incorporation or bylaws of a corporation may specify that all or a portion of the shares of the corporation may be represented by share certificates in the form of certificate tokens.”
If passed, the bill would take effect on July 1, 2019, after which corporations may issue certificate tokens instead of stock certificates.
“The electronic message, command or transaction that transmits the certificate tokens to the data address to which a certificate token was issued shall be authorized at the time of issuance by one (1) or more messages, commands or transactions signed with the network signatures of two (2) officers designated in the bylaws or by the board of directors of the corporation.”
Certificate tokens would contain information about shares that can be entered on a blockchain or other secure, auditable database. Information about the token may be electronically sent to the issuers, token holders or transferees.
Pro-crypto lawmakers in Wyoming also recently introduced House Bills 0062 and 0057.
Under HB 62, open blockchain tokens with real-world use cases are defined as intangible personal property. The bill states that open blockchain tokens are not security tokens.
“‘Consumptive’ means a circumstance when a token is exchangeable for, or provided for the receipt of, services, content or real or tangible personal property, including rights of access to services, content or real or tangible personal property”.
ANOTHER ONE in the books for #Wyoming, 8-1 on HB 62, which broadens #utilitytoken language enacted in 2018 & moves it out of securities chapter into its own chapter of WY law, creating a brand new class of property (digital assets). Here testifying to committee @Tyler_Lindholm pic.twitter.com/0jfckEk4VT
— Caitlin Long 🔑 (@CaitlinLong_) January 10, 2019
HB 57 enables blockchain startups to operate under less regulatory restrictions in a “financial technology sandbox.” The sandbox provides waivers for certain statutes and laws over a 24-month period.
aaaannnddd ANOTHER ONE! #Wyoming #fintech sandbox bill passed House committee 9-0!! Way to go @Tyler_Lindholm! Thanks to the small army of people who came to Cheyenne today! Vote on #bank bill deferred to next Friday, so stay tuned for updates on that big one! @asset_trade pic.twitter.com/w8e0iJHkX8
— Caitlin Long 🔑 (@CaitlinLong_) January 11, 2019
Wyoming has been a leader in creating a regulatory framework for blockchain and has tackled the nuances between utility tokens and other types of cryptocurrencies.
HB 70 passed the House and Wyoming Senate last year in a unanimous vote 60 to 0. The bill exempts certain blockchain tokens from specified securities and money transmission laws.
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