Two new blockchain bills have been passed in the State of Wyoming on February 19. The information was released by the official website of the state legislature and reported by Cointelegraph. One of the bills is related to tokenization and another one to compliance.
Wyoming Passes Two New Blockchain Bills
The House Bill 185, related to tokenization, was introduced back in January. This allowed storing certificate tokens that represent stocks using blockchain technology. It is also possible to use other databases as well that would allow them to be digitally transferred. The bill was sponsored by several Representatives including Olsen, Brown, Hunt, Lindholm, Western and Swonitzer. It will become effective as soon as July 1, 2019.
There is also another bill, the House Bill 74, that was introduced also in January. Caitling Long, the president of the Wyoming Blockchain Coalition, informed that the legislation will be creating special purpose depository institutions to serve businesses. In general, companies related to blockchain technology and virtual currencies are unable to secure FDIC-insured banking services.
Long said about it:
“[The bill] provides that a special purpose depository institution would be prohibited from making loans, would be required to maintain 100% of its deposits in reserve, would provide services only to businesses, and must comlpy with all applicable federal laws.”
There are different jurisdictions that are starting to implement blockchain regulations. Wyoming is one of the most open states in the US towards blockchain and crypto firms. The U.S. Securities and Exchange Commission (SEC) has also been trying to play a more active role in the crypto market. The regulatory agency has already announced several enforcement actions against Initial Coin Offerings (ICOs).
At the same time, Wyoming has passed a bill on February 14, that will allow cryptocurrencies to be recognized as money. This will have effect since March 1. There will be three different categories for virtual currencies. The firstone is digital consumers assets, the second one digital securities, and the last one virtual currencies.
Other countries such as Japan, Malta or Switzerland have also created clear rules regarding the cryptocurrency space. As virtual currencies and distributed ledger technology (DLT) expanded all over the world during the last years, it is necessary for jurisdictions to develop a clear regulatory framework around these new assets and technologies.