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Legislation From Wyoming Could Enable Blockchain-Based Stock Certificates

Distributed Summary:

  • Bipartisan bill would allow corporations to use blockchain tokens as their only form of stock certification
  • Comes on the heels of other pro-blockchain legislation passed in the state
  • Successful implementation under these blockchain-friendly laws may change legislation elsewhere

A proposed bill in the state Legislature of Wyoming could allow the issuing of blockchain-based, tokenized stock certificates.

Recently, a bill was filed jointly in the Wyoming state House and Senate to allow corporate stock-certificate tokens. Democratic Senator Chris Rothfuss joined several Republican representatives to bring this bipartisan measure forward.

Under the proposed terms of the bill, “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.” In other words, tokens created using a blockchain ledger can serve as the only form of stock certification that a corporation has.

The bill goes on to state that these certificates can be authorized via officers of the various corporations as determined by bylaws or membership on their respective boards of directors. If passed, the bill will go into effect this July.

Wyoming in particular has recently seen a number of successful initiatives in the blockchain industry. Several bills have easily passed through the Wyoming State Legislature, including one just last month to ease banking regulations on the blockchain industry. Wyoming seems to be positioning itself as a regional hub for the expansion of distributed ledger technology, thanks to the efforts of the local government.

With this recent track record of legislative cooperation, it seems likely to assume that this bill will pass, especially considering that it’s a bipartisan measure. Blockchain technology and the financial sector are often closely connected, and this tokenized certificate initiative is no different. Successful blockchain implementation in Wyoming could provide the hard data needed to convince other legislators to revolutionize the financial system altogether.

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