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Committee approves bill allowing special-purpose depository institutions to convert to trust companies
Summary
The Corporations, Elections & Political Subdivisions Committee on a 9-0 roll call advanced Senate File 95, which clarifies the process for special purpose depository institutions to transition to state-chartered trust companies and makes technical accounting and rulemaking changes tied to that transition.
CHEYENNE — The House Corporations, Elections & Political Subdivisions Committee voted unanimously to pass Senate File 95, “Special Purpose Depository Institution Amendments,” advancing a bill that clarifies how special purpose depository institutions (SPDIs) may convert to trust companies and makes technical changes to related accounting and rulemaking provisions.
The measure, reported out of committee by roll call, passed 9-0. Committee members recorded aye votes from Representative Brown, Vice Chair Locke, Representatives Heft, Johnson, Lucas, Weber, Yin (absentee), Webb (absentee) and Chairman Knapp.
The bill drew brief testimony from Jeremiah Bishop, Wyoming’s state banking commissioner, who said the draft is “kind of a cleanup item.” Bishop told the committee staff had “worked through the transition from a speedy to a trust company” and that the office would adopt rules to govern the process.
Supporters from industry and advocacy groups described the change as part of Wyoming’s ongoing effort to attract financial services and FinTech charters. Tyler Lindholm, state director of Americans for Prosperity, said the state’s special-purpose depository charter is “very novel” and has helped attract companies to Wyoming; he urged lawmakers to preserve options for financial firms. Matt Kaufman, an attorney and member of the state select committee on blockchain, said the bill helps maintain Wyoming’s competitiveness for digital-asset and FinTech businesses and noted continued federal developments in digital asset policy.
Scott Meyer, representing Wyoming Community Banks and the Wyoming Bankers Association, also testified in support and indicated the industry had worked with the bill’s sponsor.
Committee chairmanship discussion focused on clarifying the drafting and on possible interim consideration of amendments. No amendments were offered at the hearing. Bishop said the banking division would issue implementing rules and handle accounting changes referenced in the bill.
The committee closed public testimony before calling the roll. With the committee vote, Senate File 95 advances to the next step in the legislative process.
The committee recorded no formal changes or amendments to the bill during the hearing; Bishop said the department would return to the committee during the interim to review specific amendments.
Background: The special-purpose depository charter is a Wyoming-specific charter used by a limited number of firms providing custody and other digital-asset-related services. Testimony at the hearing described four entities currently operating under the charter and two more actively engaging the process.
