Wyoming passes Utility Token Bill - Not a Security or a Commodity

[longman77]

The Utility Token bill was designed to exempt specific cryptocurrencies from state money transmission laws and is the first of its kind to legally define the way in which specific types of crypto tokens are treated by regulatory bodies. The bill excludes “developers or sellers” of tokens from securities laws under the caveat that they meet certain conditions. In order to meet these requirements, the token must not be offered as an investment and must be a vehicle for exchange as a utility token.

    The state of Wyoming is the first elected body in the world to define a utility token as a new type of asset class different from a security or commodity,” Caitlin Long, co-founder of the Wyoming Blockchain Coalition, told me. “This has been a hot topic in Washington D.C. recently, as the SEC considers cryptocurrencies to be securities, FinCEN says they’re generally money, and the CFTC views them as commodities. Now, however, you have a state coming out and defining utility tokens as a new form of property, and property is generally the purview of state law.

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[simple999]

yes, it's good when the legislature is on the side of the crypt, it's bad when on the contrary) it was interesting to eat your post, thank you)

[CryptoBry]

Well and good. Whoever sponsored and approved this bill have to be thanked for their effort to clearly defined tokens not as currency or money but as property. I am not sure what are the implications for this definition as far as taxation is concerned but I think this is much better than what other federal agencies are proposing. We are hoping that this pioneering move coming from Wyoming would set the standard which other states can copy.

[Coffee135]

Well and good. Whoever sponsored and approved this bill have to be thanked for their effort to clearly defined tokens not as currency or money but as property. I am not sure what are the implications for this definition as far as taxation is concerned but I think this is much better than what other federal agencies are proposing. We are hoping that this pioneering move coming from Wyoming would set the standard which other states can copy.

From the point of view of taxation, there is no difference how cryptocurrencies will be called. If it is an investment asset then you will pay capital gains tax. If they are to be regarded as a currency you will have to pay income tax. In any case, the tax will have to pay. Only the use of cryptocurrencies as a currency between people we will not have the duty to pay taxes.

[Ghondronk]

The Utility Token bill was designed to exempt specific cryptocurrencies from state money transmission laws and is the first of its kind to legally define the way in which specific types of crypto tokens are treated by regulatory bodies. The bill excludes “developers or sellers” of tokens from securities laws under the caveat that they meet certain conditions. In order to meet these requirements, the token must not be offered as an investment and must be a vehicle for exchange as a utility token.

    The state of Wyoming is the first elected body in the world to define a utility token as a new type of asset class different from a security or commodity,” Caitlin Long, co-founder of the Wyoming Blockchain Coalition, told me. “This has been a hot topic in Washington D.C. recently, as the SEC considers cryptocurrencies to be securities, FinCEN says they’re generally money, and the CFTC views them as commodities. Now, however, you have a state coming out and defining utility tokens as a new form of property, and property is generally the purview of state law.

In that time, however, lawmakers finished work on measures to exempt cryptocurrencies from the state's money transmission laws and approve the use of blockchain-based records for corporations.