Legislation proposing the issuance of tokenized stock certificates through the use of blockchain technology has been introduced by the lawmakers from Wyoming State of the USA.
Wyoming Blockchain Bill – More about It
A House Bill 0185 having the title “Corporate stock-certificate tokens” has been filed jointly by Republican representative Jared Olsen, Democratic Senator Chris Rothfuss, and 6 other Republican representatives. The concerned Wyoming Blockchain Bill proposed an amendment permitting the use of tokenized digital share certificates instead of paper-based certificates.
The bill proposes:
“The articles of incorporation or bylaws of a corporation may specify that all or a portion of the shares of the corporation may be represented by share certificates in the form of certificate tokens.”
Reports say that if the proposed Wyoming Blockchain Bill (House Bill 0185) is passed by the house then the share certificates (representing stock ownership) would be stored electronically into a blockchain or other database that is auditable. The bill-document also says that the concerned stored data will then be “transmitted electronically to the issuing corporation, the person to whom the certificate token was issued and any transferee.”
The tokenized stock certificates will be authorized through the network signatures (which are unique identifying hashes) of either 2 directors or officers of a corporation. The document also says that if the bill is passed by the house into law then the same will be effective from July 1, 2019.
Wyoming – A Blockchain Technology and Crypto Friendly State
The US State of Wyoming is reportedly taking multiple legislative initiatives around blockchain use. The Wyoming state approved a bill allowing blockchain startups operate within a regulatory sandbox to receive a legislative vote. During February 2018, the state also passed a bill unanimously to exempt certain utility tokens from the regulations meant for the securities.
In December 2018, Teton County of the Wyoming state signed a MoU (Memorandum of Understanding) with a subsidiary of Overstock.com’s Medici Ventures – Medici Land Governance – for putting its land registry on a distributed ledger.
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