Wyoming Statutes Title 34. Property, Conveyances and Security Transactions § 34-29-104. Digital asset custodial services

(a) A bank may provide custodial services consistent with this section upon providing sixty (60) days written notice to the commissioner.  The provisions of this section are cumulative and not exclusive as an optional framework for enhanced supervision of digital asset custody.  If a bank elects to provide custodial services under this section, it shall comply with all provisions of this section.

(b) A bank may serve as a qualified custodian, as specified by the United States securities and exchange commission in 17 C.F.R. § 275.206(4)-2 .  In performing custodial services under this section, a bank shall:

(i) Implement all accounting, account statement, internal control, notice and other standards specified by applicable state or federal law and rules for custodial services;

(ii) Maintain information technology best practices relating to digital assets held in custody.  The commissioner may specify required best practices by rule;

(iii) Fully comply with applicable federal anti-money laundering, customer identification and beneficial ownership requirements;  and

(iv) Take other actions necessary to carry out this section, which may include exercising fiduciary powers similar to those permitted to national banks and ensuring compliance with federal law governing digital assets classified as commodities.

(c) A bank providing custodial services shall enter into an agreement with an independent public accountant to conduct an examination conforming to the requirements of 17 C.F.R. § 275.206(4)-2(a)(4) and (6) , at the cost of the bank.  The accountant shall transmit the results of the examination to the commissioner within one hundred twenty (120) days of the examination and may file the results with the United States securities and exchange commission as its rules may provide.  Material discrepancies in an examination shall be reported to the commissioner within one (1) day.  The commissioner shall review examination results upon receipt within a reasonable time and during any regular examination conducted under W.S. 13-3-702 .

(d) Digital assets held in custody under this section are not depository liabilities or assets of the bank.  A bank, or a subsidiary, may register as an investment adviser, investment company or broker dealer as necessary.  A bank shall maintain control over a digital asset while in custody.  A customer shall elect, pursuant to a written agreement with the bank, one (1) of the following relationships for each digital asset held in custody:

(i) Custody under a bailment as a nonfungible or fungible asset.  Assets held under this paragraph shall be strictly segregated from other assets;  or

(ii) Custody under a bailment pursuant to subsection (e) of this section.

(e) If a customer makes an election under paragraph (d)(ii) of this section, the bank may, based only on customer instructions, undertake transactions with the digital asset.  A bank maintains control pursuant to subsection (d) of this section by entering into an agreement with the counterparty to a transaction which contains a time for return of the asset.  The bank shall not be liable for any loss suffered with respect to a transaction under this subsection, except for liability consistent with fiduciary and trust powers as a custodian under this section.

(f) A bank and a customer shall agree in writing regarding the source code version the bank will use for each digital asset, and the treatment of each asset under the Uniform Commercial Code, title 34.1, Wyoming statutes if necessary.  Any ambiguity under this subsection shall be resolved in favor of the customer.

(g) A bank shall provide clear, written notice to each customer, and require written acknowledgement, of the following:

(i) Prior to the implementation of any updates, material source code updates relating to digital assets held in custody, except in emergencies which may include security vulnerabilities;

(ii) The heightened risk of loss from transactions under subsection (e) of this section;

(iii) That some risk of loss as a pro rata creditor exists as the result of custody as a fungible asset or custody under paragraph (d)(ii) of this section;

(iv) That custody under paragraph (d)(ii) of this section may not result in the digital assets of the customer being strictly segregated from other customer assets;  and

(v) That the bank is not liable for losses suffered under subsection (e) of this section, except for liability consistent with fiduciary and trust powers as a custodian under this section.

(h) A bank and a customer shall agree in writing to a time period within which the bank must return a digital asset held in custody under this section.  If a customer makes an election under paragraph (d)(ii) of this section, the bank and the customer may also agree in writing to the form in which the digital asset shall be returned.

(j) All ancillary or subsidiary proceeds relating to digital assets held in custody under this section shall accrue to the benefit of the customer, except as specified by a written agreement with the customer.  The bank may elect not to collect certain ancillary or subsidiary proceeds, as long as the election is disclosed in writing.  A customer who makes an election under paragraph (d)(i) of this section may withdraw the digital asset in a form that permits the collection of the ancillary or subsidiary proceeds.

(k) A bank shall not authorize or permit rehypothecation of digital assets under this section.  The bank shall not engage in any activity to use or exercise discretionary authority relating to a digital asset except based on customer instructions.

(m) A bank shall not take any action under this section which would likely impair the solvency or the safety and soundness of the bank, as determined by the commissioner after considering the nature of custodial services customary in the banking industry.

(n) Banks are not subject to the annual report license tax levied under W.S. 17-16-1630 .  In lieu of this tax and to offset the costs of supervision and administration of this section, a bank which provides custodial services under this section shall pay a supervision fee equal to two-tenths of one mill on the dollar ($.0002) relating to assets held in custody under this section as of December 31 of each year, with payment of the supervision fee made on or before the following January 31.  The supervision fee shall be deposited by the commissioner into the financial institutions administration account and may be expended for any purpose authorized for that account.  Banks providing custodial services outside of this section shall not be required to pay this supervision fee.

(o) The commissioner may adopt rules to implement this section.

(p) As used in this section:

(i) “Bank” has the meaning ascribed to it in W.S. 13-1-101(a)(i) ;

(ii) “Commissioner” means the banking commissioner;

(iii) “Custodial services” means the safekeeping and management of customer currency and digital assets through the exercise of fiduciary and trust powers under this section as a custodian, and includes fund administration and the execution of customer instructions.


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