Wyoming Lawmakers Approve Blockchain ‘Sandbox’ Bill

The U.S. state Wyoming, which is also called, the Cowboy State is continuing all of its efforts towards the idea of welcoming blockchain and cryptocurrency businesses. To further put forward these efforts, the state just recently gave the go-signal using a bill to allow blockchain startups to operate within a regulatory “sandbox” for a legislative vote.

Giving Full Authorization

The Wyoming House Committee on Minerals, Business and Economic Development unanimously approved its financial technology sandbox bill just this week. The bill, if is able to pass into law, will give the state the much-needed authorization to enable startups to test new technologies. At the same time, it will give businesses the ability to determine how they might function within existing regulatory regimes. This includes blockchain startups, according to the bill.

Caitlin Long, who is the co-founder of the Wyoming Blockchain Coalition, pinpointed that the state “already has an efficient approach to regulation compared to most other states.”

Many of the other states in the United States “can be very heavy-handed” with regulations, in particular with regard to financial services, Long told the media recently while adding:

“Wyoming’s sandbox provides a one-year alternative for innovators, and it can be extended for a second year. That’s a lot of runway for disruptors looking to try new things.”

‘The Most Important’ Step

It holds true that the bill has already been passed via the committee. However, Long noted that this is just one of the first 13 steps, “though arguably [it is] the most important.” The legislative session, in particular, is expected to end sometime in March this year. She believes that the entire process could be completed within the given timeframe.

Also, the sandbox bill has been successful in crossing the first hurdle. But as far as the special-purpose depository bank bill is concerned, it will not be voted until January 18. For Long, it is best described as the “signature bill.”

Establishing a New Asset Class

The aforementioned bill is called the “Wyoming Utility Token Act-property amendments” Bill 62 and it plays a significant role in establishing  a new asset class that completely defines “open blockchain tokens with specified consumptive characteristics [as] intangible personal property.”

The definition basically suggests that these tokens do not require an exemption from federal securities laws. It is imperative to note that the bill:

“The open blockchain tokens governed by this act do not constitute securities because a person who is sold a consumptive open blockchain token cannot receive a cash payment or share of profits from a developer or business, but will instead receive a fixed amount of consumable services, content or property.”