Wyo. Code R. 091-0004-4
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Chapter 4: Interdiction of WYST
Effective Date: 01/14/2026 to Current
Rule Type: Current Rules & Regulations
Reference Number: 091.0004.4.01142026
Section 1. Authority. These rules are promulgated by the Commission, in accordance with W.S. 40-31-105(b)-(c).
(a) The Director or the Chief Risk and Compliance Officer shall develop and update internal policies and procedures related to this Chapter, subject to initial approval from the Commission.
(a) The Director or Commission Staff, on behalf of the Commission, has the authority to Freeze WYST subject to subsections (b)-(d) of this Section.
(b) The Director or Commission Staff shall Freeze WYST in compliance with the Commission Staff's internal policies and procedures under the following circumstances:
(i) When directed to do so pursuant to a Temporary Lawful Legal Directive;
(ii) When the Director or Commission Staff confirms WYST are owned, held, or used by a prohibited person or entity on a sanctions list maintained by the Office of Foreign Assets Control ('OFAC'), in a geography prohibited by OFAC, similar lists maintained by applicable governmental authorities, or otherwise must be frozen to comply with global sanctions lists; or
(iii) If the Director otherwise reasonably believes, based on the advice of the Commission Staff, Licensed Service Providers, legal counsel, government officials, or entities who are contractually supporting WYST on behalf of the Commission, that WYST is being used for illegal purposes under federal or State of Wyoming laws, rules, or regulations.
(c) Unless prohibited by the Temporary Lawful Legal Directive or applicable law and at the Director's or Commission Staff's discretion, once the Freezing of WYST has been completed, the Director or Commission Staff shall communicate to the affected party that respective funds have been frozen in accordance with the time period specified in the Temporary Lawful Legal Directive, or thirty (30) days if no time period is specified.
(i) The Director or Commission Staff shall inform the sender of the legal directive that the freeze may be extended beyond thirty (30) days upon receipt of additional legal directive, but that absent further directive, the freeze shall be released at the conclusion of the thirty (30) days.
(d) The Director or Commission Staff shall deny a governmental or regulatory body any request to Freeze WYST absent a Temporary Lawful Legal Directive.
(a) The Director or Commission Staff, on behalf of the Commission, has the authority to Seize WYST subject to subsections (b)-(f) of this Section.
(b) WYST may be subject to Seizure if the Commission is instructed to Seize WYST from the affected party, or Seize and custody a portion of Reserves associated with WYST subject to such a Seizure, by a Final Lawful Legal Directive from a federal regulator, or from a judicial body having jurisdiction over the Commission.
(c) The Commission shall not Seize WYST from the affected party, nor Seize any portion of Reserves associated with WYST subject to such a request, absent a Final Lawful Legal Directive.
(d) Upon receipt of a Final Lawful Legal Directive, the Director or Commission Staff shall also analyze the relevant information in the Final Lawful Legal Directive to determine if additional action is required by the Director or Commission Staff, including but not limited to, communicating with other government bodies or discontinuing business relationships.
(e) If the Commission receives a Final Lawful Legal Directive, the Director or Commission Staff shall promptly transfer via on-chain transaction the affected WYST to a segregated digital wallet controlled by the Commission, and shall Seize WYST consistent with state statute, rules promulgated, and adopted agency procedures.
(f) If the Final Lawful Legal Directive does not include instructions as to what entity should receive the Seized WYST, the Director or Commission Staff shall determine the resolution of the Seized WYST consistent with state statute, rules promulgated, and adopted agency procedures.