§ 13-1-206 — Financial institutions; fiduciary and custodial accounts; bankruptcy and receivership treatment

Wyoming § 13-1-206

• Jurisdiction: Wyoming
• Title 13: Banks, Banking and Finance
• Ch. 1: GENERAL PROVISIONS
• Art. 2: APPLICABILITY

Text

(a) Covered accounts under the administration or
management of a financial institution, as defined in W.S. 13-1-
101(a)(ix), that meet the requirements of subsection (b) of this
section shall not be deemed assets or liabilities of the
financial institution for the purposes of any receivership or
conservatorship under this title or a bankruptcy, receivership
or other similar proceeding under federal law. This section, and
other applicable provisions of Titles 4, 13 and 34, Wyoming
Statutes, shall govern whether an account is a custodial account
for the purposes of any proceedings pursuant to titles 7, 11, 12
and 15 of the United States Code or similar insolvency,
receivership, conservatorship or restructuring proceedings.
(b) Consistent with subsection (a) of this section, a
covered account shall be subject to the following requirements:
(i) The covered account shall be governed by a
written agreement consistent with subsection (d) of this
section;
(ii) Assets held in the covered account shall be
segregated from the assets and liabilities of the financial
institution, and shall be accounted for separately on the books
and records of the financial institution;
(iii) Digital assets held in a covered account may be
held in omnibus digital wallets that are commingled with digital
assets held in other covered accounts, provided that the books
and records of the financial institution reflect the assets held
in each covered account;
(iv) Assets of the financial institution shall not be
commingled with assets held in covered accounts;
(v) A financial institution may utilize a
subcustodian to maintain a covered account if the agreement
specified by paragraph (i) of this subsection meets each of the
following requirements:
(A) Explicitly identifies the subcustodian by
name; and
(B) The subcustodian may not commingle fiat or
digital assets held in the covered account with the fiat or
digital assets of the subcustodian.
(vi) The staking of digital assets held in a covered
account shall be permitted, but only if the agreement specified
by paragraph (i) of this subsection meets each of the following
requirements:
(A) Explicitly authorizes staking;
(B) Prior to and after staking, the digital
assets may never be commingled in digital wallets with the
digital assets of the financial institution or any third party
service provider;
(C) Third parties who provide staking services
for covered accounts shall maintain a written agreement that
prior to and after staking, customer digital assets are never
commingled with the digital assets of that third party service
provider; and
(D) Otherwise complies with W.S. 34-29-104.
(vii) Digital assets in a covered account may be held
on third-party platforms for the limited purpose of trade
execution, but only if the agreement specified by paragraph (i)
of this subsection:
(A) Explicitly authorizes trading on third-party
platforms;
(B) Provides that digital assets may not be held
on third-party platforms for a period of time longer than
reasonably required to execute transactions;
(C) Otherwise complies with W.S. 34-29-104.
(viii) Stablecoin reserves may be held in covered
accounts and are subject to this section, but only if the
financial institution complies with this section;
(ix) The covered account meets all other applicable
requirements of law, including title 4 of the Wyoming statutes,
W.S. 34-29-101 through 34-29-209 and 34.1-1-101 through 34.1-9-
809.
(c) Covered account agreements between financial
institutions and customers shall include the following or
similar language:
"This is a covered account agreement entered into pursuant to
W.S. 13-1-206. All parties intend for this agreement to create
a covered account under which the assets provided pursuant to
this agreement remain the property of the customer and not the
financial institution. The financial institution agrees to
comply with W.S. 13-1-206 and to refrain from commingling any
customer assets with assets of the financial institution."
(d) If a covered account will hold stablecoin reserves,
the covered account agreements between financial institutions
and customers shall include the following or similar language:
"This covered account will hold stablecoin reserves and the
beneficiaries of this covered account are the holders of the
corresponding stablecoins."
(e) Nothing in this section shall be construed as
restricting or prohibiting use of a subcustodian that maintains
a custodial account which complies with the requirements of this
section.
(f) As used in this section:
(i) "Covered account" means either a custodial
account or a fiduciary account;
(ii) "Custodial account" means an account under which
a financial institution provides custodial services, as provided
in W.S. 34-29-104(a);
(iii) "Custodial account agreement" means the
agreement between a financial institution and customer pursuant
to subsection (b) of this section;
(iv) "Fiduciary account" means an account governed by
Title 4, Wyoming Statutes, and is an account established by a
financial institution for which the institution owes a fiduciary
duty to a customer and involves the exercise of substantial
discretion, which shall include investment advice or investment
decision making relating to financial assets, including
currency, digital assets, securities and commodities;
(v) "Fiduciary account agreement" means the agreement
between a financial institution and customer pursuant to
subsection (b) of this section;
(vi) "Stablecoin" means digital assets that are
designed to maintain a stable value in relation to another asset
and which a holder of the stablecoin may convert, redeem or
repurchase for another asset. "Stablecoin" includes the Wyoming
Stable Token identified in W.S. 40-31-102(a)(viii);
(vii) "Stablecoin reserves" means the fiat or digital
assets which are intended to be used for exchanging stablecoin
for fiat or digital assets;
(viii) "Staking" means committing digital assets to
participate in the validation of transactions relating to a
blockchain protocol, or any substantially similar analog;
(ix) "Subcustodian" means a third-party that provides
technical services concerning digital asset and fiat custody and
that is a financial institution, licensed money transmitter
under W.S. 40-22-101 et seq. or a bank organized under the laws
of the United States.