The “open blockchain tokens-exemptions” bill has successfully been introduced to the House of Wyoming, with 60 representatives unanimously voting in favor of sending it to the committee stage.
“Many bills fail on their first vote, but these 2 sailed through!” Caitlin Long, who has been keeping an eye on the tokens exemptions bill and the exemption from money transmitter laws for cryptos bills, said.
The matter will now go before the committee. Where, considering the unanimous strong bipartisan support, the two bills might likewise find the approval of the majority of representatives, if not all of them.
“Still a long way to go,” before they become final law, Long says, but it may be in just weeks, by “mid-March before we know the final outcome,” she adds.
This bill would be the first tokens specific law by a legislative body in the world, if passed, and would exempt tokens from being classified as securities when they act as utilities.
A utility token is defined as arising in circumstances where it is not promoted as an investment, the token is exchangeable for goods, and there is no repurchase agreement. The bill says:
“A developer or seller of an open blockchain token shall not be deemed the issuer of a security… if the token has not been marketed by the developer or seller as an investment; the token is exchangeable for goods or services; and the developer or seller of the token has not entered into a repurchase agreement of any kind or entered into an agreement to locate a buyer for the token.”
In contrast to Arizona’s crypto taxation bill, which passed by only one extra vote in favor, the Wyoming tokens exemptions bill appears to be on far stronger ground.
With its passing potentially changing the boundaries of SEC’s jurisdiction where utility tokens are concerned, so clarifying, at least in part, the legal standing of some ICOs.