In Wyoming’s bid to become the crypto-blockchain capital of the United States, maybe even the world, new legislation was recently passed that protects certain crypto tokens from having to face regulations.
From Tech Crunch
|Wyoming works to make some crypto tokens exempt from regulation|
Wyoming, a wide-open state with plenty of free wind power, is continuing to be a surprising leader in cryptocurrency legislation. To wit: their recent passing of H.B. No. 0070, a bill that allows the sale of “open Blockchain tokens” to be exempt from regulation and money sending legislation.
These tokens are very specific in their use and would more commonly be called “utility tokens:” essentially tokens used in the consumption of various services. They are very different from so-called equity tokens which are sold on the promise (or implied promise) of investor gain.
The tokens must fulfill one or all of these criteria:
(I) The developer or seller of the token reasonably believed that it sold the token to the initial buyer for a consumptive
(II) The token has a consumptive purpose that is available at the time of sale and can be used at or near the time of sale for
use for a consumptive purpose;
(III) If the token does not have a consumptive purpose available at the time of sale, the initial buyer of the token is prevented from reselling the token until the token is available for use for a
consumptive purpose; or
(IV) The developer or seller takes other reasonable precautions to prevent buyers from purchasing the token as a financial