Caitlin Long shares insights on Wyoming recognizing “clear, direct property rights for digital assets”

Caitlin Long, the co-founder of Wyoming Blockchain Coalition, took to Twitter to give additional insights on Wyoming’s passing of the SF0125 bill. The groundbreaking bill allows Wyoming to recognize “clear, direct property rights for digital assets.”

Long says:

“1/ BOOM! #Wyoming just recognized clear, direct property rights for #digitalassets by passing SF125! This means #blockchain cos will prob want to apply WY law to your contracts, domicile here, &/or have a physical presence here. Thx again to the army of ppl who helped over months.”

The bill will go to Governor Mark Gordon for legalization next week:

“2/ As @TraceMayer says, v impt for broad adoption of #crypto that it be “backwards-compatible w/ law.” SF125 enables that. Bill was amended w/ improvements & latest is here: https://wyoleg.gov/Legislation/2019/sf0125 …. Goes to @GordonGovernor for signature & could officially become law next week”

Wyoming law recognizes direct ownership of digital assets:

“3/ I'll publish analysis after it officially becomes law, but here's the key: #Wyoming law recognizes property rights in the DIRECT ownership of #digitalassets. Property law in US is determined by states, not the feds. WY not only did it first but did it right!! This applies to 

4/ all types of #digitalassets. In other words, you're not forced to own #digitalsecurities thru an intermediary-that's HUGE! #blockchain tech enables DIRECT ownership of assets & now the law does too. You can still choose indirect ownership (u shouldn't), but u aren't forced to.”

Wyoming being the epicenter of blockchain law in the U.S.A:

“5/ DIRECT ownership of #digitalassets fits nicely w/ #Wyoming's culture (ie, what's mine is mine & what's yours is yours; good fences make good neighbors; rugged individualism). And #rehypothecation is a felony in #Wyoming (SmithvState, 1986 Supreme Ct case). So it makes perfect

6/ sense that #Wyoming is the epicenter of #blockchain law in the US. That's also why institutional investors, which are prohibited by federal law from directly owning the assets they manage, can rest assured that Wyoming's #digitalasset custodians are actually solvent, unlike

7/ custodians subject to #NewYork law--I'll have a lot more to say about that soon. But for now, let's congratulate the wise #Wyoming legislature for enabling #blockchain technology instead of trying to force it into an indirect ownership regime, as some in the legal community.”

Indirect ownership leads to bad practices:

“8/ were advocating. Indirect ownership is how vast majority of US #securities are owned, & that's what ultimately enabled many bad #WallSt practices that skim value from Mom&Pop investors (#rehypothecation, failures to deliver, naked shorting, unauthorized securities lending).”

Wyoming protects investors better than New York:

“9/ #Wyoming studied that alternative legal regime & rejected it. Yay! Wyoming protects PROPERTY RIGHTS &, for institutional investors who must own indirectly, it protects #investors far better than #NewYork does. SF125 also solves a problem some called ‘#bitcoin’s fatal flaw,’”

Bitcoin’s “fatal flaw”:

“10/ which was the mess created by lack of clarity for #digitalassets under commercial law (called #UCC), including untrackable liens. Have fun watching the transfer of capital away from NY & into WY in the coming years, esp as securities are increasingly issued on #blockchains!!!”

Wyoming paving the way:

“11/ For #blockchain cos that want to move to #Wyoming, stay tuned for details about upcoming events we'll be hosting to help you move here! Or just c'mon out here & visit, as some others are already doing! #TheWorldNeedsMoreCowboys #BuckingTheSystemSince1886”