In the U.S. state of Wyoming, lawmakers have introduced a bill that would allow the issuance of tokenized stock certificates using blockchain tech. Titled “Corporate stock-certificate tokens,” it proposes an amendment that would permit the use of tokenized digital share certificates in lieu of paper-based versions.
The House Bill 0185, is filed jointly by representative Jared Olsen (Republican), along with Senator Chris Rothfuss (Democratic) and six other Republican representatives on Wednesday. The proposed bill states:
“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.”
If passes the HB0185 would allow share certificates, the representation for ownership of the stocks, to be stored in an electronic format. Their information will be entered into a blockchain or other auditable database, as per the bill.
This information would then be “transmitted electronically to the issuing corporation, the person to whom the certificate token was issued and any transferee.” The tokenized certificates could also be authorized via the network signatures, a unique identifying hashes of two officers or directors of a corporation.
Upon its approval, the new law would come into effect from July 1, 2019, according to the document. Wyoming has been taking several legislative initiatives around cryptocurrencies and blockchain technology. Just last week, the state approved a bill that will enable blockchain startups to operate within a regulatory sandbox for a legislative vote.