Wyoming lawmakers introduce bill to allow issuance of tokenized stock certificates

Wyoming lawmakers have introduced a bill that would allow corporates to issue certificate tokens in place of stock certificates using blockchain technology, CoinDesk reported.

On January 16, Republican Jared Olsen, Senator Chris Rothfuss (Democrat), along with six other Republican representatives filed House Bill 0185, titled “Corporate stock-certificate tokens.”

The bill proposes an amendment to authorize the issuance of tokenized stock certificates instead of paper-based certificates.

“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 document states.

If approved, the bill would permit share certificates to be “stored in an electronic format which contains the information… entered into a blockchain or other secure, auditable database.” The information could be “transmitted electronically to the issuing corporation, the person to whom the certificate token was issued and any transferee.”

At the time of issuance, these certificate tokens would be authorized via network signatures – a “string of alphanumeric characters” or unique identifiers – of “two officers designated in the bylaws or by the board of directors of the corporation.”

If the bill is signed into law, it would come into force on July 01, 2019, the document added.

Earlier this week, the Wyoming House Committee on Minerals, Business and Economic Development has unanimously approved the “Financial Technology Sandbox” bill.

Vote on another blockchain-friendly bill, the special-purpose depository bank bill, is expected to take place on January 18. In addition, House Bill 70was introduced last week that seeks to authorize “the secretary of state to develop and implement a blockchain commercial filing system.”