Hb 70 Case Study

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On February 19th, the State of Wyoming House unanimously passed two blockchain bills as a way to incentivize the industry to invest in this mid-west region in the United States. These bills now head to the Senate for approval. The first bill, HB 70, focuses on utility tokens, being offered in the form of Initial Coin Offerings (ICOs) being exempt from state security regulations and the second, HB 19, excludes cryptocurrency from the state’s money transmitter act.
HB 70 focuses on utility tokens which typically provide access to a service. Balaji S. Srinivasan, ceo of Earn.com, classifies them in the following way: “Tokens are not equity, but are more similar to paid API keys [when accessing cloud services]. The purchase of a token like ether …show more content…

More specifically, the state requires:
A developer or seller of an open blockchain token shall not be deemed the issuer of a security.
• The token has not been marketed by the developer or seller as an investment.
• The token is exchangeable for goods or services.
• The developer or seller of the token has not entered into a repurchase agreement of any kind or entered into an agreement to locate a buyer for the token
• 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.
Is not the subject of a repurchase 5 agreement of any kind or the subject of an agreement to 6 locate a buyer for the token.
• The person takes reasonably prompt action to terminate the exchange of a token that does not conform to the requirements of this subsection
The other bill passed, HB 19, focuses on providing exemptions to the Money Transmitter Act for virtual currencies. In this specific act, virtual currencies are defined as: “means any type of digital representation of value that:
• Is used as a medium of exchange, unit of account or store of

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