2018 HB 70 (HEA 27, Ch. 44) — Open blockchain tokens, exemptions
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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
ORIGINAL HOUSE ENGROSSED
BILL NO. HB0070
ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
AN ACT relating to securities; providing that a person who
develops, sells or facilitates the exchange of an open
blockchain token is not subject to specified securities and
money transmission laws; providing specified verification
authority to the secretary of state and banking
commissioner; making conforming amendments; and providing
for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1. W.S. 17-4-206 is created to read:
17-4-206. Open blockchain token exemption.
(a) Except as otherwise provided by subsection (c) of
this section, a developer or seller of an open blockchain
token shall not be deemed the issuer of a security and
shall not be subject to the provisions of W.S. 17-4-301
through 17-4-412 and 17-4-504 if all of the following are
met:
(i) The developer or seller of the token, or the
registered agent of the developer or seller, files a notice
of intent with the secretary of state, as specified in
subsection (d) of this section;
(ii) The purpose of the token is for a
consumptive purpose, which shall only be exchangeable for,
or provided for the receipt of, goods, services or content,
including rights of access to goods, services or content;
and
(iii) The developer or seller of the token did
not sell the token to the initial buyer as a financial
investment. This paragraph shall only be satisfied if:
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ORIGINAL HOUSE ENGROSSED
BILL NO. HB0070
ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
(A) The developer or seller did not market
the token as a financial investment; and
(B) At least one (1) of the following is
true:
(I) The developer or seller of the
token reasonably believed that it sold the token to the
initial buyer for a consumptive purpose;
(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 investment.
(b) Except as otherwise provided by subsection (c) of
this section, a person who facilitates the exchange of an
open blockchain token shall not be deemed a broker-dealer
or a person who otherwise deals in securities under this
chapter and shall not be subject to the provisions of W.S.
17-4-301 through 17-4-412 and 17-4-504 if all of the
following are met:
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ORIGINAL HOUSE ENGROSSED
BILL NO. HB0070
ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
(i) The person, or the registered agent of the
person, files a notice of intent with the secretary of
state, as specified in subsection (d) of this section;
(ii) The person has a reasonable and good faith
belief that a token subject to exchange conforms to the
requirements of paragraphs (a)(i), (ii) and (iii) of this
section; and
(iii) The person takes reasonably prompt action
to terminate the exchange of a token that does not conform
to the requirements of this subsection.
(c) Notwithstanding any other provision of law, a
developer, seller or a person who facilitates the exchange
of an open blockchain token is subject to the provisions of
W.S. 17-4-501 through 17-4-503 and 17-4-505 through
17-4-510 only to the extent necessary to carry out those
sections. The secretary of state shall have the authority
provided under W.S. 17-4-601 through 17-4-613 to determine
compliance with the provisions of this section, including
whether a person qualifies for the exemptions set forth in
this section. The evidentiary burdens specified in W.S.
17-4-503 shall apply in any proceeding initiated by the
secretary of state pursuant to this subsection.
(d) A developer, seller or a person who facilitates
the exchange of an open blockchain token, or the registered
agent of the applicable person, shall electronically file a
notice of intent with the secretary of state before the
person shall qualify for an exemption under this section.
The notice of intent shall contain the name of the person
acting as a developer, seller or facilitator, the contact
information of the person or the registered agent of the
person and specify whether the person will be acting as a
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ORIGINAL HOUSE ENGROSSED
BILL NO. HB0070
ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
developer, seller or facilitator. A secure form shall be
made available by the office of the secretary of state on
its internet website for this purpose.
(e) As used in this section, "open blockchain token"
means a digital unit which is:
(i) Created:
(A) In response to the verification or
collection of a specified number of transactions relating
to a digital ledger or database;
(B) By deploying computer code to a
blockchain network that allows for the creation of digital
tokens or other units; or
(C) Using any combination of the methods
specified in subparagraphs (A) and (B) of this paragraph.
(ii) Recorded in a digital ledger or database
which is chronological, consensus-based, decentralized and
mathematically verified in nature, especially relating to
the supply of units and their distribution; and
(iii) Capable of being traded or transferred
between persons without an intermediary or custodian of
value.
Section 2. W.S. 17-4-102(a)(iv)(D), (E), by creating
a new subparagraph (F), (xvii)(intro), (xxviii)(D), (E) and
by creating a new subparagraph (F), 40-22-104(a)(iv), (v)
and by creating a new paragraph (vi) and 40-22-126 by
creating a new subsection (b) and by renumbering (b)
through (f) as (c) through (g) are amended to read:
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ORIGINAL HOUSE ENGROSSED
BILL NO. HB0070
ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
17-4-102. Definitions.
(a) In this act, unless the context otherwise
requires:
(iv) "Broker-dealer" means a person engaged in
the business of effecting transactions in securities for
the account of others or for the person's own account. The
term does not include:
(D) An international banking institution;
or
(E) A person excluded by rule adopted or
order issued under this act;. or
(F) A person who facilitates the exchange
of an open blockchain token, as defined in W.S. 17-4-206(e)
and subject to W.S. 17-4-206(c).
(xvii) "Issuer" means a person that issues or
proposes to issue a security, subject to W.S. 17-4-206(a)
and (c) and the following:
(xxviii) "Security" means a note; stock;
treasury stock; security future; bond; debenture; evidence
of indebtedness; certificate of interest or participation
in a profit-sharing agreement; collateral trust
certificate; preorganization certificate or subscription;
transferable share; investment contract; voting trust
certificate; certificate of deposit for a security; put,
call, straddle, option, or privilege on a security,
certificate of deposit, or group or index of securities,
including an interest therein or based on the value
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ORIGINAL HOUSE ENGROSSED
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ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
thereof; put, call, straddle, option, or privilege entered
into on a national securities exchange relating to foreign
currency; or, in general, an interest or instrument
commonly known as a "security"; or a certificate of
interest or participation in, temporary or interim
certificate for, receipt for, guarantee of, or warrant or
right to subscribe to or purchase, any of the foregoing.
The term:
(D) Includes as an "investment contract" an
investment in a common enterprise with the expectation of
profits to be derived primarily from the efforts of a
person other than the investor and a "common enterprise"
means an enterprise in which the fortunes of the investor
are interwoven with those of either the person offering the
investment, a third party, or other investors; and
(E) Includes as an "investment contract,"
among other contracts, an interest in a limited partnership
and a limited liability company and an investment in a
viatical settlement or similar agreement;. and
(F) Does not include an open blockchain
token, as defined in W.S. 17-4-206(e), except as provided
by that section.
40-22-104. Exemptions.
(a) This act shall not apply to:
(iv) Banks, bank holding companies, credit
unions, building and loan associations, savings and loan
associations, savings banks or mutual banks organized under
the laws of any state or the United States provided that
they do not issue or sell payment instruments through
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ORIGINAL HOUSE ENGROSSED
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ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
authorized delegates or subdelegates who are not banks,
bank holding companies, credit unions, building and loan
associations, savings and loan associations, savings banks
or mutual banks; and
(v) Electronic transfer of government benefits
for any federal, state or county governmental agency as
defined in Federal Reserve Board Regulation E by a
contractor for and on behalf of the United States or any
department, agency or instrumentality thereof, or any state
or any political subdivisions thereof;. or
(vi) A person who develops, sells or facilitates
the exchange of an open blockchain token, as defined in
W.S. 17-4-206(e).
40-22-126. Unlicensed persons; verification authority
regarding exemptions.
(b) If the commissioner has reason to believe a
person is engaged in or is about to engage in any activity
which would be subject to this act but for an exemption
asserted pursuant to W.S. 40-22-104(a)(vi), and the
commissioner has reason to believe the requirements of W.S.
40-22-104(a)(vi) have not been met, the commissioner may
issue an order to show cause why an order to cease and
desist the activity should not issue.
(c)(b) In an emergency, the commissioner may petition
the district court for the issuance of a temporary
restraining order.
(d)(c) An order to cease and desist becomes effective
upon service upon the person.
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ORIGINAL HOUSE ENGROSSED
BILL NO. HB0070
ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
(e)(d) An order to cease and desist remains effective
and enforceable pending the completion of an administrative
proceeding pursuant to W.S. 40-22-127 and 40-22-128.
(f)(e) A person served with an order to cease and
desist for violating W.S. 40-22-103 may petition the
district court for a judicial order setting aside,
limiting, or suspending the enforcement, operation, or
effectiveness of the order pending the completion of an
administrative proceeding pursuant to W.S. 40-22-127 and
40-22-128.
(g)(f) The commissioner shall commence a contested
case proceeding within twenty (20) days after issuing an
order to cease and desist.
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ORIGINAL HOUSE ENGROSSED
BILL NO. HB0070
ENROLLED ACT NO. 27, HOUSE OF REPRESENTATIVES
SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 BUDGET SESSION
Section 3. This act is effective immediately upon
completion of all acts necessary for a bill to become law
as provided by Article 4, Section 8 of the Wyoming
Constitution.
(END)
Speaker of the House President of the Senate
Governor
TIME APPROVED: _________
DATE APPROVED: _________
I hereby certify that this act originated in the House.
Chief Clerk
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