The Wyoming House of representatives has given the nod to exempt Utility Tokens from purview of security regulations. The House Bill 70 is now pending for the approval of the Senate. If the bill is approved by the state governor, it will come into effect from July 1, 2018.
The utility token sellers and developers need to meet certain criteria to be eligible for the exemption from security regulations. According to the block, the utility tokens should not be traded or used as an investment.
The sellers are also barred from entering into a repurchase agreement. They are also not allowed to enter into an accord to search for buyers of the utility tokens. The entities, which are involved in the sale of utility tokens, are also exempted from the classification of broker/ dealer if they meet listed criteria. The tokens should be used for exchanging goods/ services. The token issuer or developer should not develop a secondary market for the tokens.
However, the loan associations, savings/ credit unions and banks are excluded from the bill. The Senate is likely to consider and approve the bill 70. The approval of exempting utility tokens from the security laws paves the way for the blockchain startups.
4 Other Blockchains Waiting for Wyoming Legislature
A bill to exempt the Cryptocurrencies from being taxed as the property was also introduced last week. The house of representatives has not examined or voted on the bill 111 that deals with virtual currencies. The federal government has not recognized the virtual currencies – Cryptocurrencies as a legal tender. However, if the bill 111 is approved by the government, it will come into effect immediately.
Other Blockchain bills and cryptocurrency bills are in the pipeline for Wyoming Legislature. The house has passed the bill HB 19 on Monday and will be introduced for Senate approval. The bill allows exemption of cryptocurrency from the money transmitter act of the state. The house has also passed HB 126 to create a series of LLCs.
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