2023 SF 127 (Ch. 185) — Wyoming Stable Token Act (W.S. 40-31)
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
AN ACT relating to trade and commerce; creating the Wyoming
Stable Token Act; creating the Wyoming stable token
commission; authorizing the Wyoming stable token commission
to issue Wyoming stable tokens as specified; providing for
employees; specifying limitations; providing immunity;
providing definitions; requiring reports; and providing for
an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1. W.S. 40-31-101 through 40-31-109 are
created to read:
CHAPTER 31
WYOMING STABLE TOKEN ACT
40-31-101. Short title.
This act shall be known and may be cited as the "Wyoming
Stable Token Act."
40-31-102. Definitions.
(a) As used in this act:
(i) "Commission" means the Wyoming stable token
commission created by W.S. 40-31-103;
(ii) "Board" means the board of the Wyoming
stable token commission;
(iii) "Director" means the director of the
Wyoming stable token commission;
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
(iv) "Financial institution" means any entity
approved by the commission to act as a manager or otherwise
to manage, operate and maintain Wyoming stable tokens;
(v) "Notional value" means face value;
(vi) "Token holder" means a person who lawfully
owns any portion of a Wyoming stable token;
(vii) "Treasurer" means the state treasurer;
(viii) "Wyoming stable token" means the virtual
currency issued by the commission pursuant to this act;
(ix) "Virtual currency" means as defined in W.S.
34-29-101(a)(iv);
(x) "This act" means W.S. 40-31-101 through
40-31-109.
40-31-103. Wyoming stable token commission.
(a) There is created the Wyoming stable token
commission, which is a body politic and corporate operating
as an instrumentality of the state of Wyoming, with
authority to adopt an official seal and to sue and be sued.
(b) The commission shall be governed by a board
composed of:
(i) The governor or the governor's designee;
(ii) The auditor or the auditor's designee;
(iii) The treasurer or the treasurer's designee;
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
(iv) Not more than four (4) subject matter
experts in virtual currency and financial technology
appointed by a majority vote of the members of the board
designated in paragraphs (i) through (iii) of this
subsection, and serving at the discretion of those members.
Only subject matter experts who are free from conflict of
interest in performing the duties of the board shall be
appointed to, or serve on, the board. Each subject matter
expert shall be required to furnish fingerprints for
submission to the federal bureau of investigation or any
governmental agency or entity authorized to receive
fingerprints for a state, national and international
criminal history background check.
(c) Members of the board appointed pursuant to
paragraph (b)(iv) of this section shall receive the same
per diem, expenses and travel allowance as members of the
legislature under W.S. 28-5-101 while in attendance at
meetings of the board and while performing their duties as
members of the board.
(d) The commission is subject to the requirements of:
(i) W.S. 16-3-101 through 16-3-105;
(ii) W.S. 16-4-201 through 16-4-205;
(iii) W.S. 16-4-401 through 16-4-408.
40-31-104. Wyoming stable token value; limitations.
A Wyoming stable token is a virtual currency representative
of and redeemable for one (1) United States dollar held in
trust by the state of Wyoming as provided by W.S.
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
40-31-106. Stable tokens shall only be issued in exchange
for United States dollars.
40-31-105. Powers of the commission.
(a) This act shall be administered by the commission
in accordance with this act.
(b) The commission shall adopt rules and regulations
as necessary to administer this act and to ensure
compliance with all applicable state and federal law.
(c) The commission may:
(i) Issue Wyoming stable tokens as provided in
this act, and provide for matters related to the issuance
of Wyoming stable tokens, including the overall number of
Wyoming stable tokens to be issued, the means used to
issue, maintain and manage the Wyoming stable tokens and
the manner of and requirements for redemption;
(ii) Retain professional services, if necessary,
including accountants, auditors, consultants and other
experts;
(iii) Make and enter into any contracts,
agreements or arrangements and retain, employ and contract
for the services of financial institutions and research,
technical and other services as necessary to implement this
act;
(iv) Select the financial institutions to manage
the Wyoming stable tokens;
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
(v) Seek rulings and other guidance from the
United States department of the treasury, the United States
internal revenue service, the United States securities and
exchange commission and any other relevant federal agency
relating to this act;
(vi) Utilize the services of the state
treasurer's office in investing and managing the Wyoming
stable token trust account;
(vii) Employ a director and employees as it
deems necessary for the performance of its duties. The
commission shall prescribe the powers and duties and fix
the compensation of the director and employees. The
director shall be required to furnish fingerprints for
submission to the federal bureau of investigation or any
governmental agency or entity authorized to receive
fingerprints for a state, national and international
criminal history background check.
(d) The commission shall:
(i) Notwithstanding W.S. 9-4-716, maintain,
invest and reinvest the funds received for issuing Wyoming
stable tokens and any earnings from those investments in
accordance with investment policies established by rule and
regulation of the commission in consultation with the
treasurer and according to this act;
(ii) Oversee the review and audit of the
operations and transactions implemented pursuant to this
act to include the commissioning of independent audits as
necessary. Costs incurred to perform independent audits and
reviews of the implementation of this act shall be deemed
operational costs.
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
(e) Before initially issuing any Wyoming stable
tokens, the director shall provide a comprehensive report
to the select committee on blockchain, financial technology
and digital innovation technology and the joint minerals,
business and economic development interim committee on all
actions taken under this act.
40-31-106. Wyoming stable token accounts.
(a) The Wyoming stable token trust account is
created. The commission shall deposit all funds received
for the issuance of Wyoming stable tokens into the account.
Funds within the account received from the sale of Wyoming
stable tokens shall be held in trust to support the
redemption of Wyoming stable tokens, and shall not be
expended for any other purpose but shall be expended to
redeem Wyoming stable tokens. The commission shall invest
funds within the account exclusively in United States
treasury bills. By creation of this trust, the state does
not create any fiduciary duty to token holders. Investment
earnings generated by the funds in the account may be
deposited in the Wyoming stable token administration
account as provided in subsection (b) of this section.
(b) Not less than one hundred percent (100%) of the
notional value of all outstanding issued Wyoming stable
tokens shall be maintained in the Wyoming stable token
trust account. All earnings paid on funds and investments
in the account shall be deposited in the account.
Investment earnings on funds in the account in excess of
one hundred two percent (102%) of the notional value of all
outstanding issued Wyoming stable tokens shall be
transferred to the Wyoming stable token administration
account.
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
(c) The Wyoming stable token administration account
is created. Funds received into the account from any source
shall be retained, expended or transferred and are
continuously appropriated according to the following
priority:
(i) To pay for the operational costs of this
act;
(ii) Retention of savings in an amount
consistent with rules set by the commission to provide for
future expenditures under paragraph (i) of this subsection;
(iii) Any remainder shall be distributed on a
quarterly basis, into the school foundation program account
created by W.S. 21-13-306(a).
40-31-107. Redemption.
One (1) Wyoming stable token shall be redeemable for one
(1) United States dollar upon demand as set forth by rule
of the commission. The value of the Wyoming stable token
upon redemption shall be one (1) United States dollar for
each one (1) Wyoming stable token, unless the interest rate
of United States treasury bills at the time of redemption
is negative or the total assets available in the Wyoming
stable token trust account divided by the number of
outstanding Wyoming stable tokens is less than one (1)
dollar, in which case the value of the Wyoming stable token
upon redemption shall be the liquidated value of the United
States treasury bill redeemed to pay the demand for the
Wyoming stable token as determined by rule of the
commission. In no case shall the redemption result in the
state paying a higher amount than the total assets in the
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
Wyoming stable token trust account divided by the number of
outstanding Wyoming stable tokens after all expenses have
been paid as determined by the commission and auditor as
provided by rules and regulations of the commission.
40-31-108. Notice of limitations.
Under rules adopted by the commission, every contract,
application or other similar document that may be used in
connection with the purchase of Wyoming stable tokens shall
clearly state that the Wyoming stable token is not insured
by this state and the principal deposited is not guaranteed
by the state beyond the notional value of the Wyoming
stable token trust account.
40-31-109. Limitations on liability.
(a) The state shall not be liable to any person for
any amount beyond the notional value of the fund maintained
in the Wyoming stable token trust account. Any Wyoming
stable tokens issued under this act are payable and
collectable solely out of the Wyoming stable token trust
account. Token holders shall not look to any general or
other state fund for redemption of any Wyoming stable
tokens. The Wyoming stable tokens shall not constitute any
indebtedness or a debt within the meaning of any
constitutional or statutory provision or limitation. The
tokens shall not be considered or held to be general
obligations of the state but shall constitute special
obligations of the state and the commission shall not
pledge the state's full faith and credit for redemption of
any Wyoming stable token.
(b) The state, the board and employees of the Wyoming
stable token commission shall be entitled to immunity from
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
liability, including defense, in connection with any
contract or transaction involving or related to Wyoming
stable tokens under this act. The state shall be entitled
to reasonable attorney fees and costs from any party who
brings an unsuccessful action on the notional value of a
token.
Section 2.
(a) Except as provided in subsection (b) of this
section, the commission shall endeavor to issue at least
one (1) Wyoming stable token not later than December 31,
2023.
(b) The attorney general shall monitor the startup
phase of the issuance of Wyoming stable tokens to ensure it
is permissible under federal and state law. If, after
assessing available legal options, the attorney general
determines that issuing a Wyoming stable token is not
permissible under either federal or state law, the
commission shall not issue a Wyoming stable token and the
director shall provide a report not later than November 1,
2023 to the select committee on blockchain, financial
technology and digital innovation technology stating the
reasons for not issuing a Wyoming stable token and
providing recommendations that would allow for issuance in
the future.
Section 3. The commission shall promulgate all rules
necessary to implement this act.
Section 4. There is transferred five hundred thousand
dollars ($500,000.00) from the general fund to the Wyoming
stable token administration account for purposes of this
act. These funds shall not be transferred or expended for
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ORIGINAL SENATE ENGROSSED
FILE NO. SF0127
ENROLLED ACT NO. 85, SENATE
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 GENERAL SESSION
any other purpose. These funds shall be repaid pursuant to
W.S. 40-31-105(a), as created by section 1 of this act.
Section 5. 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 Senate.
Chief Clerk
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