The Wyoming state in the US continues to be a surprising leader in cryptocurrency legislation. The state recently passed H.B. No. 0070, a bill that allows the sale of “open Blockchain tokens” to be exempt from regulation and money sending legislation.
These tokens are very specific in their use and would more commonly be called “utility tokens:” essentially tokens used in the consumption of various services. They are very different from so-called equity tokens which are sold on the promise (or implied promise) of investor gain.
According to the bill, the tokens must fulfill one or all of these criteria:
(I) The developer or seller of the token reasonably believed that it sold the token to the initial buyer for a consumptive purpose
(II) The token has a consumptive purpose that is available at the time of sale and can be used at or near the time of sale for use for a consumptive purpose
(III) If the token does not have a consumptive purpose available at the time of sale, the initial buyer of the token is prevented from reselling the token until the token is available for use for a consumptive purpose; or
(IV) The developer or seller takes other reasonable precautions to prevent buyers from purchasing the token as a financial investment.”
Wyoming has already exempted cryptocurrencies from the Wyoming Money Transmitter Act, a fact can be exploited to allow for sandboxing of blockchain-based money transfer services.
The bill is an essential move by Wyoming for a number of reasons. Firstly, it shows Wyoming, like Vancouver, is forward-thinking in using its talents and resources to allow freer reign for cryptocurrency companies. Inviting a few dozen crypto startups to Cheyenne would up the tax rolls considerably. Also, it shows Wyoming’s willingness to be a test bed for future regulation, for good or ill. Like Colorado and California, Wyoming is experimenting with the future in hopes of improving the present.
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