Bill Asking For Classification of Digital Assets Within Existing Laws Presented In Wyoming

A crypto-related bill presented in Wyoming demands for classification of digital assets within existing laws, requisitions for a framework for banks when dealing with digital assets and asks for the jurisdiction of Wyoming Courts regarding digital assets.

Wyoming is a seeing a crypto speak out from the legislators. A crypto-related bill just made into the legislator’s enclave asking for tokenization of stocks days earlier.

Sponsored by Senator Nethercott and co-sponsored by Senator(s) Driskill, Perkins, Rothfuss and Representative(s) Harshman, Lindholm, Loucks, Olsen, Wilson, this bill is a comprehensive request for clarification regarding digital assets.

The bill is divided into four parts:
1.Classification of digital assets as property
2.Perfection of security interests in digital assets
3.Digital asset custodial services
4.Jurisdiction of courts

Part 1 states that a digital asset may be treated as a financial asset provided a written agreement with the owner of the digital asset. In the case digital asset is treated as financial asset, it shall remain intangible personal property.

Part 2 deals with the bullet-proofing of security interests in the assets by only allowing a secured party or a trustee to have the exclusive authority to conduct a transaction relating to a digital asset by means of a private key or multi‑signature arrangement.

Part 3 states that a bank may serve as a qualified custodian, if only it complies with applicable federal anti‑money laundering, customer identification and beneficial ownership requirements and gets into a written agreement about the source code version for the asset with the customer. The bank will also notify the customer about any updates and clarify about any risks involved.

Part 4 gives Wyoming courts the jurisdiction to hear claims in both law and equity relating to digital assets.

The bill, if passed, will come in effect on July 1, 2019.

Photo by Nuno Silva on Unsplash

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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