The Wyoming House of Representatives passed legislation today, HB 0070, by a unanimous vote that defines certain Blockchain tokens neither as a security nor as money. The attempt appears to be to create a definition of a utility token that is not regulated as a security nor a commodity.
The bill now must be approved by the Wyoming Senate but with a vote in the House of 60-0 it stands a pretty good chance of getting approved into law.
The state movement is indicative of the still evolving federal approach of dealing with cryptocurrencies and how one should define a utility token – if they exist at all. SEC Chairman Jay Clayton recently stated every initial coin offering he has seen has been a security. Another question of note is whether or not other states will follow suit, perhaps in an attempt to create a jurisdiction that is virtual currency friendly.
The legislation, as it stands now, says that to be an “open Blockchain token” the issuer may not market the token as an investment and the token is exchangeable for goods and services. The seller may not enter into a repurchase agreement and a person who facilitates the exchange of a token shall not be deemed a broker dealer.
Earlier this month, the Wyoming Senate passed a bill that exempted all property taxation on virtual currencies meaning no state taxes on your Bitcoin trading (but you will still need to pay the Federal taxes).
This one is still developing but the Act, if signed into law, is supposed to become effective on July 1st, 2018.
See the documentation below.
