Wednesday, March 7, 2018

Wyoming bill to exempt blockchain tokens ready for Governor's signature!

 Matt Mead, the Governor of Wyoming has 4 blockchain bills in his inbox (with a 5th coming), waiting for his signature in order to become law. HB 70 already passed the Wyoming Senate by a vote of 27-3, after passing the House with a UNANIMOUS 60-0 vote! This bill aims to exempt certain Utility Tokens from certain regulation.

What this refers to is what many call "cryptocurrencies", but are:

1. "not marketed as an investment by developer or seller"
2. "is exchangeable for goods or services"
3. "The developer or seller of the token has not entered into a repurchase agreement of any kind or entered into an agreement to locate a buyer for the token."

 What does this mean? It doesn't mean that all ICOs get a free pass, what it means is that cryptocurrencies who fall into these guidelines which are considered "utility tokens", will not be required to follow state money transmission laws, and will not be treated as securities. Businesses and persons who wish to explore and utilize blockchain technology, and create tokens, will have less red tape, and less unanswered questions when it comes to legal questions that were formerly not clear, and left unanswered. People will be able to pursue their dreams to be a part of the blockchain & cryptocurrency revolution, with less worries of having an alphabet soup of governmental agencies coming down on them, or regulating them out of business or practice.

Notable direct quotes from the HB 70 itself:

"A person who facilitates the exchange of an open blockchain token shall not be deemed a broker-dealer or a person who otherwise deals in securities"

and interestingly enough, the banksters have their own little part they need to read:

 "This act shall not apply to: (iv) Banks, bank holding companies, credit unions, building and loan associations, savings and loan associations, savings banks or mutual banks organized under the laws of any state or the United States provided that they do not issue or sell payment instruments through authorized delegates or subdelegates who are not banks, bank holding companies, credit unions, building and loan associations, savings and loan associations, savings banks or mutual banks;"

 Interesting...So the banks & their associates DO NOT get the exemption, so long as they do not delegate it to others that are not banks, etc. In other words, you create it or market/sell it yourself, you do not get the exemption, and thus must follow the state's money transmission & securities laws and standards & practices.

 If you would like to read the entire language of HB 070, the link is below. It is actually quite short and pleasant to read, which does not happen very often when reading legislation.

oh and by the way, another quote from HB 70: "This act is effective July 1, 2018."

I look forward to that day, what do YOU think?

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