New Wyoming Blockchain Bill Proposes Tokenized Stock Certificates Via House Bill 0185
New Wyoming Blockchain Bill Proposes Tokenized Stock Certificates
Wyoming can be considered one of the most progressive states in the U.S. when the subject is the acceptance of the blockchain technology. We can see how this is the truth when looking at a new law proposed by lawmakers of Wyoming. A new bill that was created there is set to allow tokenized stock certificates to be emitted using blockchain tech.
The bill was proposed by Jared Olsen and Chris Rothfuss, a Republican and a Democratic politician, making it a bipartisan law, which has more chances of being passed. Known as House Bill 0185 and titled Corporate Stock-Certificate Tokens, the proposition would allow tokenized digital share certificates that would be just as valid as their paper versions.
According to the text of the bill, shares of a company may be represented by share certificates that will be digital. If the law passes, share certificates that represent ownership of company stocks could be stored digitally and the blockchain (or any other auditable digital database, for that matter) could be used to store these documents.
The bill also provides that these tokenized certificates could use unique hashes as network signatures to prove that they were real if they were authorized by two of the top officers or directors in the corporation from which the stocks are from.
If everything actually goes according to the plan and the law succeeds, it would start to be in effect on July 1, 2019.
Wyoming And The Blockchain
The state of Wyoming is taking very important steps to create use cases for the blockchain and the lobby for the acceptance of the technology is very strong there. Last week, the state issued a bill that would provide a regulatory sandbox for blockchain startups in the state.
Also, a set of legislation that exempted utility tokens from the securities law was passed last year and that was in a year in which the U. S. Securities and Exchange Commission (SEC) was very concerned about tokens being securities.
Finally, in December 2018, Teton County, which is in Wyoming, has signed a memorandum of understanding with Medici Land Governance to use the blockchain in land registries in the county.
It is still too early to know if Wyoming’s progressive stance on the blockchain may help it to create the next Silicon Valley there, but the state is surely on the right path.