According to the official Wyoming legislature, they have introduced a new bill in the House to allow corporations to issue their stocks as tokens on the blockchain network.
Wyoming Bill 185 would allow corporate stocks to be tokenized. The bill is reportedly supported by representatives Olsen, Brown, Hunt, Lindhold, Western, and Zwonitzer along with Senators Driskill and Rothfuss. If passed the bill would permit the storing, issuing, and digital transfer of these tokenized corporate securities and will go into effect from July 1st. It is expected that the bill will likely pass because of its broad support.
The proposed bill states “An ACT relating to corporate shares and distributions; authorizing corporations to issue certificate tokens in lieu of stock certificates as specified; making conforming amendments; and providing for an effective date.”
“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.”
Wyoming recently came into limelight for introducing and approving a landmark blockchain-friendly bill in their legislature. Previously, on November 30th 2018, the state officially approved a bill that would allow traditional banking to integrate itself with the cutting edge blockchain technology. Firms in this industry have to go through several regulatory hardships but activities like Wyoming’s recently passed bill are a hope of ray as the state looks forward to establish itself as the US leader in regulatory support for blockchain innovation and tokenized securities.
As the ICO fundraising model became increasingly unpopular after several associations with scams, where many of them failed to turn profitable, security tokens are expected to rise to take their place as the normative funding model for crypto investors.
What do you think of Wyoming’s support of tokenizing corporate stocks and blockchain-friendly bill? Let us know your thoughts in the comments.