Wyoming Senate recognizes some cryptocurrencies as money but fails to lead on utility tokens

According to The Block, on February 2, the Senate of the state of Wyoming passed a bill (the text available here) classifying digital assets into three categories: digital consumer assets, digital securities and virtual currencies. Virtual currencies will now be considered money for certain purposes.

The state legislators, however, do not seem to have attempted to sufficiently clarify the legal status of digital assets not qualifying as virtual currencies. They attempted to define what looks like a utility token (and not a security) but essentially excluded any utility-token-type instruments that are acquired by at least some people for investment purposes.

This approach undermines the usefulness of utility tokens for projects since they initially need to sell it to investors to raise money for development because they do not yet have the tech to propose to would-be consumer users.


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