On February 2, Wyoming senators passed a bill which clarifies the classification of crypto assets. This bill places crypto assets into three categories:
- Digital consumer assets – “Digital asset” means a representation of economic, proprietary or access rights that are stored in a computer-readable format, and includes digital consumer assets, digital securities, and virtual currency;
- Digital securities – “Digital security” means a digital asset which constitutes a contract, transaction or arrangement where a person invests money in a common enterprise and is led to expect profits from the efforts of a promoter or a third party.
- Virtual currencies – Used as a medium of exchange, a unit of account or store of value.
More on the new cryptocurrency bill
To make things easier to understand, digital consumer assets will be considered general intangibles, digital securities will be considered securities and investment properties, and virtual currencies will be considered money.
The bill also establishes a framework for banks to provide custodial services for crypto assets. Banks opt-in to provide crypto custody solutions must provide sixty days written notice to the commissioner. The provisions of this section are cumulative and not exclusive as an optional framework for enhanced supervision of digital asset custody. If a bank elects to provide custodial services for digital assets under this section, it shall comply with all provisions of the section.
In addition to that, all companies must implement all accounting, account statement, internal control, notice and other standards specified by applicable state or federal law and rules for custodial services.
Companies must also fully comply with applicable federal anti‑money laundering, customer identification, and beneficial ownership requirements; and take other actions necessary to carry out this section, which may include exercising fiduciary powers similar to those permitted to national banks and ensuring compliance with federal law governing digital assets classified as commodities.
One more thing to note is that any bank shall not engage in any activity to use or materially affect a digital asset except based on customer instructions.
The bill now heads to the Wyoming House of Representatives for debate. The website for the State of Wyoming’s legislature states that the bill would go into effect on March 1, 2019.
For those who are interested in learning more about this bill, visit the link mentioned above.