Wyoming Bill Passes in Favor of Cryptocurrency
Since Bitcoin’s inception, regulation has been deemed as the cryptocurrencies number one barrier. On September 15 of this past year, Crypto enthusiasts were left in awe after the release of the news deeming cryptocurrency exchanges illegal in China.
This was the first of many debilitating news releases that drove regulation to the forefront of the cryptocurrency debate. Price subsequently dropped over 40–50% following the next 2 days, as fears of other countries following suit.
Cryptocurrency Vision
Since the 2008 release of Satoshi Nakamoto’s whitepaper detailing his vision for a decentralized and unbiased economy, regulation and the free-world vision behind Bitcoin have come head to head in multiple instances. The latest is being deemed by many as the largest step forward in the fight against public adoption of cryptocurrency, which is coming directly through the Wyoming state board in a bill that proposes to make blockchain-based tokens exempt from traditional security laws and regulations.
Here’s the technical and less exciting explanation of what’s happening: Wyoming state senators proposed an act through an 8-page bill that would prevent all blockchain-based tokens from being regulated as “securities”. The bill proposes that these tokens, or cryptocurrencies, would, therefore, be treated rather as the equivalent of “prepaid cell phone minutes”, or to an extent, “trade-able gift cards.”
Token issuers would not serve as “issuers of a security” and would be exempt from security laws, as long as they stay true to the bill’s compliance. Token issuers would not be responsible for terms of investments, but for digital forms of payment; solely.
In order to be exempt from these securities laws, the blockchain based tokens would have to serve as a form of exchange and would not be allowed to be issued by anyone claiming to be a “broker/dealer”, as traditionally regulated securities are. These tokens would not be subject to provisions set in motion by the W.S. 17–4–301 through 510 regulations which traditional securities are subject to.
The passing of this act redefines cryptocurrency regulation for the better. In recent months, token teams have been the subject of subpoenas, fraud accusations, and interference through SEC securities laws. Since there is no previous bill or act that can protect tokens and blockchain based digital coins, many times regulation plows through cases as there’s no room for a defensive case.
Bill Exempting Utility Tokens from Securities Laws Unanimously Passes Wyoming House
This serves as the first usable asset in a new age digital asset defense case. It hedges against government intervention, and provides a newfound stability for token issuers and holders alike. The passing of this bill is a monumental step towards public adoption as this bill sets a precedent in future cryptocurrency regulation decisions.
It doesn’t matter if an investor thinks cryptocurrencies are speculative or does or does not have future potential, the fact is that they do possess qualities, that if reasonably programmed and integrated to everyday society, would enable faster and more efficient transactions than what we experience today.
The road is being paved for mass adoption to take place, allowing mass change in the current fiat financial system. At the moment, regulations and laws that deem tokens as securities would limit their usage and issuance.
The Wyoming bill is the first ever bill passed by an elected legislative body addressing blockchain based tokens. The passing of this bill changes the global debate over cryptocurrencies.
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