Earlier today blockchain evangelist Caitlin Long announced on LinkedIn that HB-70, the Utility Token ICO bill passed the Senate and is now on the Governors desk. We reported on this bill last month when it passed the house. This marks a huge step for ICO’s and has the potential to create a cryptocurrency hub in the state with a dearth of new economic activity.
HB-70 is proposed law in Wyoming which aims to tackle the ambiguity surrounding the meaning of a “utility token”. While the issue has been tackled in the past by the infamous SEC memo, much ambiguity still surrounds the definition with many deferring to the Howey test derived from a supreme court case in the 1940’s to determine whether or not a token constitutes a security. This ambiguity has landed more than a few founders in jail and the federal governments inaction has left it up to the states to regulate what constitutes a “utility token”.
In comes HB-70 which offers a clear, unambiguous definition. It states that in order for a token to be classified as a utility token, or “open blockchain token”, it must meet the following conditions:
This is the fourth bill in Wyoming to pass the Senate out of 5 proposed in 2018. While this bill focuses on utility tokens it’s just one of a broader set of bills aimed at making Wyoming what Long calls “A Haven for Blockchain”.
Wyoming and Delaware’s race to become the blockchain capital are sure to set a precedent with other states vying for a slice of the cryptocurrencies ever-expanding market cap. These bills aren’t law yet but given the Governor’s support, they are sure to pass. A bigger risk is that the SEC could nullify HB-70. Time will tell as the SEC navigates the new, volatile, and often dangerous cryptocurrency markets.
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Last modified: July 2, 2020 8:17 PM UTC