Wyoming Makes History: State House Unanimously Passes Pro-Blockchain Bills in Landmark Vote

In what blockchain advocates are calling a watershed moment for United States cryptocurrency regulation, Wyoming’s House of Representatives has unanimously voted to pass two groundbreaking blockchain bills on February 20, 2018. The twin victories — HB 70, the “utility token bill,” and HB 19, the “bitcoin bill” — now head to the State Senate, marking a significant step toward creating clear, crypto-friendly regulation in America.

The unanimous passage of both bills sends a powerful signal at a time when the broader cryptocurrency market is grappling with regulatory uncertainty at the federal level. While agencies like the SEC and CFTC debate how to classify and oversee digital assets, Wyoming is charting its own course toward becoming a blockchain innovation hub.

TL;DR

• Wyoming House unanimously passes HB 70 (utility token bill) and HB 19 (bitcoin bill)
• HB 70 defines utility tokens as neither money nor securities under specific conditions
• HB 19 exempts cryptocurrency from the Wyoming Money Transmitter Act
• Passage could pave the way for Coinbase to resume operations in Wyoming
• Wyoming aims to become America’s most blockchain-friendly state

HB 70: Defining the Utility Token

The Wyoming HB 70 bill establishes a clear legal framework for utility tokens, or “open blockchain tokens,” by defining them as neither traditional money nor securities — provided they meet three specific conditions. First, the token must not have been marketed by protocol developers as an investment opportunity. Second, the token must be exchangeable for goods or services, implying that protocols must offer a working product or service before tokens are issued. Third, the protocol developer must not have entered into any repurchase agreement or agreement to locate buyers for the token.

This framework bears resemblance to Switzerland’s recent ICO guidelines and represents one of the first attempts by a U.S. state legislature to provide clear token classification rules. For the decentralized finance ecosystem, this distinction between utility tokens and securities is crucial — it determines whether token issuers must comply with costly and complex securities registration requirements.

HB 19: Opening the Door for Crypto Exchanges

HB 19 addresses a more immediate practical concern by exempting cryptocurrency from the Wyoming Money Transmitter Act. This is particularly significant because a 2015 interpretation of that act by the Wyoming Division of Banking made it effectively impossible for cryptocurrency exchanges to operate in the state. The most visible casualty was Coinbase, which suspended all operations in Wyoming indefinitely in June 2015 as a direct result of the restrictive regulatory interpretation.

Should HB 19 clear the State Senate and become law, major cryptocurrency exchanges would have a clear pathway to resume operations in Wyoming. For residents who have been without easy access to regulated crypto trading platforms for nearly three years, this could mark a dramatic improvement in access to digital asset markets.

The Caitlin Long Effect and Wyoming’s Blockchain Ambition

Much of the credit for this legislative push belongs to the Wyoming Blockchain Coalition, co-founded by Caitlin Long, a 22-year Wall Street veteran who has become one of the most vocal advocates for blockchain-friendly regulation in the United States. In an interview following the House vote, Long attributed the bills’ success to productive collaboration between Wyoming’s banking and securities regulators and the efforts of State Representative Tyler Lindholm, who co-sponsored and championed all five blockchain-related bills introduced in the session.

Wyoming’s strategic positioning goes beyond mere regulatory friendliness. The state offers cheap electricity — a critical factor for cryptocurrency mining operations — along with no state income tax and no franchise tax. These advantages, combined with the new legislative framework, could make Wyoming an attractive destination for blockchain startups and crypto businesses seeking regulatory clarity in the United States.

Additional Blockchain Legislation in the Pipeline

The two unanimously passed bills are part of a broader package of blockchain-related legislation under consideration in Wyoming. HB 101, the “blockchain filings bill,” would update Wyoming’s Business Corporations Act to authorize the creation and use of blockchains for storing corporate records, identify shareholders through network addresses, and accept shareholder votes via network signatures. This bill has already passed its first reading in the House.

HB 126, the “series LLC bill,” would allow the creation of “series LLCs,” a flexible corporate structure that could be particularly useful for blockchain-based organizations managing multiple distinct projects or token ecosystems under a single legal umbrella. Meanwhile, SF 111 is progressing through the State Senate, completing a comprehensive package of blockchain-friendly legislation.

Why This Matters

Wyoming’s legislative action represents a counter-narrative to the regulatory crackdowns dominating cryptocurrency headlines in early 2018. While countries like China and South Korea have taken a restrictive approach, and U.S. federal regulators have moved cautiously, Wyoming is demonstrating that American states can proactively create clear, innovation-friendly regulatory frameworks. The unanimous passage of these bills — in a conservative state legislature, no less — suggests that pro-blockchain regulation can achieve broad bipartisan support when properly framed and advocated for. For the broader DeFi and blockchain ecosystem, Wyoming’s experiment could serve as a blueprint for other states seeking to attract blockchain innovation while maintaining appropriate consumer protections.

Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Legislative outcomes are subject to change pending Senate approval and gubernatorial signature.