New legislation has been recently introduced by the Lawmakers from the U.S. state of Wyoming that would make use of blockchain technology to allow the issuance of tokenized stock certificates.
Jared Olsen (Republican) one of the representatives along with six other Republican representatives and senator Chris Rothfuss (Democratic) on Wednesday together filed House Bill 0185. The bill which titled “Corporate stock-certificate tokens,” proposed an amendment that would give the power to use tokenized digital share certificates in lieu of paper-based versions.
The proposed bill in general states that “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.”
House Bill 0185, if passed by the lawmakers will allow share certificates that represent ownership of stocks. The stored certificates will be using the blockchain to enter the new information or edit the auditable database, as per the document. The information added thus will be “transmitted electronically to the issuing corporation, the person to whom the certificate token was issued and any transferee.”
With the help of network signatures, it would also be possible to authorize the tokenized certificates – unique identifying hashes –directors of a corporation or of the two officers. The document also states that the bill if passed will come into effect from 1st July 2019.
U.S. state of Wyoming, as of now, has taken several legislative initiatives that revolve around blockchain use cases. Wyoming, last week, also approved a bill in which it gives authority to blockchain startups to operate within a regulatory sandbox for a legislative vote. Last February, the state legislative also exempted some utility tokens from securities regulations by unanimously passing a bill.
Apart from that, last month a memorandum of understanding was signed by the state’s Teton County with a subsidiary of Overstock.com’s Medici Ventures named as Medici Land to put its land registry system on the blockchain.