In the United States, there is a lot of predicaments with how to classify cryptocurrencies…
They were property, security, and now in a turn of events, Wyoming has devoted a new asset class to cryptocurrency.
Wyoming Creates “Utility Token” Asset Class For Cryptocurrencies
Here’s what happened…
On March 13th Forbes reported that Wyoming had passed a bill naming cryptocurrency as a new asset class called “utility tokens.”
House Bill 70 has enabled money transmitters to return to Wyoming while also helping to encourage cryptocurrency and blockchain movement to the state.
What originally was a proposition by the Wyoming Blockchain Coalition, has officially helped change the definition of crypto in Wyoming.
Caitlin Long, the Co-founder of the coalition, stated:
“The state of Wyoming is the first elected body in the world to define a utility token as a new type of asset class different from a security or commodity. This has been a hot topic in Washington D.C. recently, as the SEC considers cryptocurrencies to be securities, FinCEN says they’re generally money, and the CFTC views them as commodities. Now, however, you have a state coming out and defining utility tokens as a new form of property, and property is generally the purview of state law.”
Essentially this new bill helps sellers of tokens and their developers to be excluded from state security laws.
Granted, the token must function as a token being used for a means of exchange and store of value, and not be marketed as an investment for getting rich.
Regardless to say, this is a major step for an area of the United States to take.
With the SEC recently coming out as moving to investigate ICOs, past, and present, the market has been shaky. This is the type of news that helps to reignite the flame and fury for crypto in the general public.
We salute you Wyoming!
Thanks for reading,
The GCA Team