Wyoming Blockchain Bill Proposes Tokenized Stock Certificates

by | Jan 18, 2019 | Cryptocurrency, Cryptocurrency News

Wyoming | Tokenized Stock Certificates| Blockchain

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.”

The Amendment 

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.

Read more: The Growth In Chinese Capital Outflows Could Bring Crypto Bull Run In 2019

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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