Wyoming Lawmakers Want Exemptions for ICO Utility Tokens
Originally published on: CoinDesk
Read the original article
January 25, 2018
Lawmakers in Wyoming have filed a bill that, if approved, would exempt some creators and sellers of blockchain tokens from securities regulations.
The bill, which according to public records has a total of 12 sponsors signed on thus far, would exclude “a developer or seller” from the applicable securities laws provided they meet certain conditions. Namely, that the token they’re offering isn’t being offered as an investment and that the token can be exchanged for something – in other words, that it has some kind of utility.
The exemption would also only apply in the event that the seller or developer “has not entered into a repurchase agreement of any kind or 12 entered into an agreement to locate a buyer for the token.”
Additionally, the Wyoming bill also lays out an exemption from being classified as a broker-dealer in relation to the token, provided that they meet the standards listed above.
Certain parties are excluded from the bill, namely banks and other financial institutions such as credit unions and savings and loan associations.
Past legislative efforts have focused on easing the regulatory environment around uses and development of the tech. In January of last year, for example, lawmakers filed a bill that would make digital currencies a permissible investment for money transmitters. Public records show that the effort ultimately failed to pass.
A full copy of the proposed law can be found below:
Image Credit: Nagel Photography / Shutterstock.com
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at firstname.lastname@example.org.