It was a big week in Wyoming for financial tech enthusiasts, STEM students, gamers and fans of consumer legislation.
The Wyoming Blockchain Stampede charged through the University of Wyoming’s campus, and lawmakers on the Select Committee on Blockchain, Financial Technology and Digital Innovation Technology worked through a slew of consumer tech draft bills and discussions on some futuristic ideas for the state.
Committee focus
Lawmakers on the select committee were busy at their last meeting of the interim, which coincided with the blockchain symposium in Laramie. These discussions started on theme for the week – reports on the Wyoming Frontier Stable Token launch, updates on related federal legislation and reviewing progress from a working group on asset-backed digital tokens. Wyoming has eyed digital tokens backed by the value of real-world assets as the next move in the financial technology space.
Sen. Chris Rothfuss (D-Laramie) suggested some of the bills they work on should start in the Senate during the next legislative session. His comments come after this year’s session, where democrats described the flagship Wyoming Freedom Caucus bills to be “feel-good” issues that don’t address public needs.
When asked if he was afraid of another “coffee house session”, he responded:
“I’m worried. I don't necessarily know that it will go that way, but I look to the last general session when we couldn't pass a substantial amount of our legislation just because of politics over in the House,” said Rothfuss. “So we’re being very judicious about where we start bills and how we work bills, so that we can try to navigate those challenges that House leadership put in place last session.”
Autonomous vehicles
David Pope, the governor’s liaison to the select committee and a commissioner on the Stable Token Commission, told the committee that he “fancies [himself] as someone who can, at least, look at things and predict part of the future. But not all of it.”
For this reason, he urged lawmakers to take on the task of regulating and expanding self-driving technology.
Pope mentioned this was not the first time the state took a swing at self-driving automobiles. A failed bill in 2021 would’ve established regulatory standards, such as registration, liability, and definitions around self-driving cars.
Given that the upcoming session will be a budget session, Pope did not expect legislation to hit the Senate or House floor next year. However, he thought it was a topic that needed in-depth discussion before regulating.
Pope presented a vision of a futuristic motorcade owned by the state. He described how fully autonomous electric vehicles could pick up Legislative Service Office staff in Cheyenne and drive them to Casper, before picking up a legislator in Casper and driving them to a meeting in a different city.
Pope suggested the autonomous fleet could potentially drive all day through the state to eliminate transportation woes and save the state money.
“It can virtually be in operation 24 hours a day,” he said. “How many vehicles in the state’s fleet would we be able to eliminate? That’s the question.” Pope added the vehicles wouldn't replace snowplow drivers and similar jobs, “yet”.
As a next step, Pope suggested a pilot program to see if autonomous driving over long distances in Wyoming’s environment is feasible. Rep. Mike Yin (D-Jackson) suggested that legislators might not be keen on funding a research trial, but Pope said he’s “reached out to the policy folks at Tesla in D.C.” and they’re “interested” to see what the committee thinks. The possibility of hiring a third party to perform the study was floated as well.
Both Sen. Rothfuss and Rep. Daniel Singh (R-Cheyenne) reacted positively to exploring the possibility. However, Singh added there are several roads they need to cross, like the ethics of autonomous vehicles when it comes to accidents or wildlife collisions. However, the committee expressed interest in a study on the use of autonomous vehicles in the state.
Expansion of the select committee
A bill that Rothfuss described as “expanding our purview beyond financial technology and digital innovation technology” passed the committee relatively quickly.
The bill would change the committee’s name to the Select Committee on Blockchain and Emerging Technologies, and adjust its goals to “promote the further development of digital commercial activity in the state.”
Data amendments
Draft legislation that would bar state and local governments from purchasing, selling, trading or transferring personal data moved forward as well. It would also bar the government from holding personal data longer than three years, and residents could request copies of their data.
County clerks had concerns around public records like voting records, but Rothfuss said the committee has talked between meetings with clerks and believes they’ve created “pretty darn good public policy.”
“Either the government can't release your data or they have to have legislative cause, justification to release it,” said Rothfuss. “Or, absent those two things, they have to justify it publicly. That's how the bill's written.”
Sen. Barry Crago (R-Buffalo) was hesitant about one aspect of the bill. He was concerned that county clerks could ultimately be overwhelmed by requests.
“If it's a public record, they can do that under the public records act already. If it's not, I'm just curious about if this prompts people to start sending in requests for data that may not even exist,” said Crago.
The committee expects it will need some committee work during the session.
Automatic subscription renewal and cancellation
Ultimately failing, Yin said the idea behind this draft bill is that “it should be just as simple to cancel a subscription as it is to sign up for a subscription.” Failing to do so would be labeled as an “unlawful, deceptive trade practice” under the bill.
He added the legislation has similar language to what other states have, such as Colorado.
Lawmakers added an amendment that exempts businesses regulated by the Federal Communications Commission (FCC), the Federal Energy Regulatory Commission (FERC) or the Wyoming Public Service Commission. The idea behind the exemption was two-fold.
First, three different communications and tech companies asked the committee to make such an exemption, suggesting they already follow numerous FCC regulations by requiring reminders. The second being that agreements such as bundles and utilities could be discontinued too easily, leading to some consumers accidentally charging themselves more, in the case of bundle deals, or turning off services without yet replacing them, in the case of utilities.
Singh said he thought the bill's efforts were noble, but felt concerns about how the bill “interferes with how businesses in the free market interact with consumers.” With three ayes and four nays, Rothfuss declared the bill “one-click canceled.”
Right-to-repair legislation
Another draft bill looks to provide consumers the ability to repair their own electronic equipment. It would also require manufacturers based in the state to create products repairable by independent parties and don’t require unique or company-exclusive tools or parts.
Over 10 people testified on this. The overwhelming majority of those comments were from communications, security and technology corporations that requested exemptions or were against the bill entirely.
Andrew Wood, the executive director for TechNet Central Region, advised the committee not to move forward with the bill, suggesting it would force “original equipment manufacturers [to] provide unvetted third parties with sensitive diagnostic information, software, tools and parts without requiring the critical consumer protections afforded by repair networks.” Wood suggested that consumers and businesses were better off with official, licensed repair technicians.
Dustin Brighton with the Repair Done Right Coalition voiced a similar opinion as Wood. He said that providing data to third-party repair shops could create security concerns for Wyomingites.
Jake Bonger, the director of government affairs for N.R.G., the parent company of Vivant Home Security, requested that security and life safety systems get an exemption. He said otherwise, vital security codes could be shared with bad actors indirectly.
Committee members were skeptical that consumer product repair would include the technical specs necessary for larger pieces of infrastructure.
Some public commenters representing technology companies said some of their goods that end up on third-party markets are used by consumers and corporations alike, and as such represented a security flaw that could be exploited if the technical knowledge was to be shared around.
Singh said he remained optimistic about the bill and suggested the committee move it forward. Despite the many public commenters' opposition to the bill, the committee made amendments and forwarded it.
The amendments removed the term “lease” so that the bill covers items already owned, and another amendment makes it so a company would have to help a consumer gain access to an electronic device they’ve bought but cannot easily access.
Virtual currency kiosk fraud prevention
The last major item relating to consumer technology was a bill draft regulating virtual currency kiosks. These are kiosks similar to traditional ATMs, but for the deposit and distribution of virtual currencies such as Bitcoin.
The bill would create definitions for a virtual currency kiosk, requirements for owning and operating one and clarify the statutes they must follow.
The conversation circulated heavily around preventing fraud, as well as trying to prevent individuals from being taken advantage of by having convenient money exchanges that are easily accessible. According to AARP, there's currently 44 crypto transaction machines in the state and the Cheyenne Police Department has reported to AARP losses of over $650,000 to Cheyenne residents through virtual currency kiosks.
Lawmakers felt confident that regulations need to be in place. However, they kicked the kiosk down the road and plan to work on it either through an extra requested committee day or as an individually brought bill during the budget session.
Preparing the next generation for a blockchain economy
The Blockchain Stampede event took place the same week as the lawmakers’ committee meeting. The University of Wyoming has, alongside the Legislature, played a large role in the education and integration of blockchain technologies.
After a speech about the future of digital assets by Caitlin Long, a Wyoming native and early blockchain investor, a panel of four took the stage to discuss blockchain tech and education. The panel was hosted by Steven Lupien, director of the UW Center for Blockchain and Digital Innovation. Beginning a theme that would endure, Lupien flexed the educational benefits of learning blockchain technology.
“About 75% of our graduates leave the state of Wyoming,” he said. “I think we have an opportunity here to stop that cycle, because blockchain jobs are good paying jobs, they're perfect for our graduates.”
State Superintendent of Public Instruction Megan Degenfelder wason the panel. She spoke positively about UW’s efforts to help diversify the state economy through technical education. She was also supportive of K-12 schools teaching blockchain technology classes, saying, “I see this area of digital assets as truly the new revolution in Wyoming, in the country, in the world.”
When asked about the possibility of students learning skills around these industries and ultimately taking them to states like Texas or California, Degenfelder suggested we’ll see new businesses pop up as well as more remote work.
“The beauty of it is, this industry means our kids can stay here and work wherever they want,” said Degenfelder. “They love Wyoming but so many leave because they need other opportunities.”
Also on the panel, Kendrick Ladd, general counsel and head of policy at the Hoskinson Government and Policy Center, complimented blockchain education in the state. “The tech changes constantly, we don’t have time to wait. We need to get our kids in the classrooms to start thinking through these foundational concepts,” he said.
Leo Wolfson, a former journalist at the Cowboy State Daily and now the Wyoming communications director for Hoskinson, also announced that the center would support UW’s efforts by creating a scholarship program for Wyoming High School students who are interested in pursuing technology education.
Data privacy, corporations and blockchain
“We’ve chosen, and have so far chosen, to believe that Facebook owns that data. But that's a choice,” Sen. Rothfuss said during a session on privacy and blockchain at the symposium. “The State of Wyoming, for example, has legal authority to say, 'Nope, that data is my data, every last bit of it. I'm letting you use it under certain terms and conditions. I set the terms and conditions, not you. Ha-Ha.’ Wouldn’t that be great?”
Rothfuss suggested a combination of political will and blockchain technology could create a framework where individuals can essentially firewall corporations from the collection and use of their data.
“Maybe you have to pay me for some of that data. That's getting looked at a lot. And again, blockchain registry, you have the capacity to do that. I've got a unique identifier, we have smart contracts, micro payments flow, and everything becomes easy and straightforward. And if I own my data, I can also finally, once and for all, say, with a little more confidence, I'm shutting it down,” he said.
When asked if there was a political appetite for such a move from the Legislature, Rothfuss suggested there might be.
“You have quite a few legislators in the Wyoming Legislature that genuinely support privacy and would be willing to take on major corporations to promote and support and protect that privacy,” said Rothfuss. “But then you do have plenty of other legislators, candidly, that aren't very interested in supporting those basic and fundamental rights. They're really more interested in appealing to the corporation than they are in preserving the rights of Wyoming citizens.”
While the Select Committee on Blockchain and financial technology moved forward with a Data Privacy based bill, that bill deals solely with information held by state entities. No such draft bill, using blockchain to secure user data from corporations, has been brought forth or discussed by the committee. When suggesting the idea to the room, a number of students and professionals shook their heads in approval of the concept.
