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.
Wyoming figured out token classification in 2018 while the SEC is still arguing about it in 2026. the unanimous house vote should have been a national blueprint
HB 70 defining utility tokens as not securities in 2018. 8 years later the SEC still hasnt figured this out
unanimous house vote in 2018 and now in 2026 congress still cant pass basic crypto legislation. states are the real innovation labs
unanimous 2018 vote on utility tokens not being securities still beats 2026 congress inaction
wyoming of all places leading on crypto regulation. unanimous house vote too. mad respect
unanimous is wild. even the most crypto-skeptic reps voted yes. says a lot about how common-sense these bills were
HB 70 defining utility tokens as not securities was way ahead of its time. most states still havent figured this out
HB 70 defining utility tokens as not securities was the single smartest piece of crypto legislation in the US. most regulators still dont understand token classification
defining utility tokens as not securities in hb70 was the smartest move any state made
HB 19 exempting crypto from the Money Transmitter Act was the move that actually mattered. HB 70 got the headlines but HB 19 removed the friction
Arjun S. HB 70 defining utility tokens as not securities was 2018 and most states in 2026 still havent caught up. regulatory inertia is expensive
^ the coinbase angle is key too. patchwork regulation forced them out of wyoming and it took years to fix
coinbase leaving wyoming and then coming back after the fix is the whole regulatory story in one anecdote
frontier_eth the coinbase angle is wild. wyoming had to fix the regulatory mess just to get them back
most states are still arguing about whether crypto is a security in 2026. wyoming solved this in 2018. embarrassing gap
unanimous vote in 2018 and most states are still fumbling in 2026. the regulatory gap between wyoming and everywhere else is embarrassing