Elected officials in the state of Wyoming from the Senate and the House of Representatives have joined forces for the good of cryptocurrency investors throughout the state. Together, they have passed a historic bill that exempts cryptocurrency tokens from security laws so long as they’re not being positioned as investments, but instead, utilities.
Yesterday, representatives from the House and Senate met to vote on the bill proposed roughly two months ago. The only thing currently standing in the way of the bill going into law is a signature from Wyoming Governor Matt Mead. Mead is expected to sign the bill into law.
The bill, dubbed the ‘utility token bill,’ concludes that blockchain tokens that are not deemed a security by law are exempt securities legislation as well as money transmitter laws. The law states that issuers and exchanges offering utility tokens can offer them freely without having to register as a licensed broker. The law becomes the world’s first piece of explicit token legislation.
Additional blockchain related bills proposed earlier in the year were also passed, including Senate File 111 which defines tokens as property and exempts them from property taxes. The full list of bills currently on the table in Wyoming can be found here.
Like most state laws, though, federal law takes precedence and the Securities and Exchange Commission may be able to overrule these bills on a federal level. Still, the fact that Wyoming – a state with the motto “Equal Rights” – is so welcoming to blockchain and cryptocurrency can only be positive for the market and investors in the long run.
Wyoming isn’t the only state that is considering the value cryptocurrency and blockchain offers. Tennessee introduced legislation that recognizes crypto as legal tender and validates digital transactions like smart contracts under state law. Arizona passed a bill allowing residents to pay their taxes in cryptocurrency. And New York is hosting “blockchain week” starting in May to entice blockchain startups and business to flock to the state.
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