Wyoming Senate Passes Bill Clarifying Crypto’s Legal Status

 

 

 

 

 

 

In a 28-1 vote on Thursday, Wyoming’s Senate approved a bill designed to bring new clarity to cryptocurrency’s legal status in the state. That bill, SF0125, would formally recognize the property rights of cryptocurrency holders and create an opt-in framework to enable Wyoming banks to provide digital asset custodial services.

The Senate bill was sponsored and introduced by Cheyenne Republican state Senator Tara Nethercott last month.

According to the legislative text the bill is:

AN ACT relating to property; classifying digital assets within existing laws; specifying that digital assets are property within the Uniform Commercial Code; authorizing security interests in digital assets; establishing an opt-in framework for banks to provide custodial services for digital asset property as directed custodians; specifying standards and procedures for custodial services under this act; clarifying the jurisdiction of Wyoming courts relating to digital assets; specifying applicability; authorizing the promulgation of rules; and providing for an effective date.

The bill recognizes three digital asset classifications: digital assets, digital securities, and virtual currencies. If SF0125 becomes law, digital assets would be viewed as general intangibles, while digital securities would be considered securities and investment property, for purposes of the Uniform Commercial Code.

Meanwhile, the bill would ensure that cryptocurrencies “shall be considered money” under Article 9 of the UCC, a designation that would reportedly afford them the same legal status enjoyed by fiat currency under the state’s commercial laws.

The bill also provides banks a way to opt into a new digital custody supervision framework that would enable them to hold digital assets in trusts and includes language granting Wyoming courts jurisdiction to hear law and equity claims related to digital assets.

The bill now moves to the Wyoming House for further consideration. 

 

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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