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Security Token Insight featuring Sen. Ogden Driskill and James Glasscock

Expert Interview

Sen. Ogden Driskill of Wyoming as he explains the new blockchain legislation in Wyoming James Glasscock, Strategic Advisor to Paratii

James Glasscock

James Glasscock is a builder that helps visionary CEOs manifest precision organization and results. He has been a crypto currency investor since 2013 and is the Co Founder of DNA.fund, a firm focused on investing in and launching blockchain ecosystems for enterprises and entrepreneurs.

His career is rooted in scalable process, organization and business development execution, with a track record of standing up operations and dealmaking at scale and systematizing for sustainable growth. Glasscock has spent much of his career as a leader of media and new product businesses, prior to DNA as VP Distribution Business Development at Warner Bros. Digital Networks Group where he developed original programming and subscription OTT distribution strategy and partnerships with partners such as Comcast, Facebook, Snap, YouTube, Vivendi, Verizon and Amazon.

As SVP of Business Development at Machinima he built Machinima’s OTT content windowing/distribution from the ground up, across Europe, The Americas and Asia. Material contribution to the P&L within 12 months and the fastest growing revenue segment for the company. Machinima was acquired by Warner Bros in December 2016.

Glasscock was SVP Strategic Planning & Broadcast Operations at Playboy TV with a product set spanning 21 TV networks (North America and Europe) and providing VOD content to 200+ worldwide affiliates. He also oversaw restructuring to optimize costs, streamline multi geography operations, reduce product set bloat, and reset analytics programs. Glasscock served as COO & CFO at Synergy Beverages, Director Business Development at Turner Broadcasting and as an analyst at Zone Ventures LLP and KPMG’s Digital Media Incubator.

He is a decorated veteran serving in US Navy during Operation Desert Storm and also an adventure travel and zen wellness enthusiast.


Senator Ogden Driskill, (R) Wyoming

Ogden Driskill is a Republican member of the Wyoming State Senate, representing District 1. He was first elected to the chamber in 2010. Driskill earned his associate degree at Casper College in 1980, and later attended the University of Wyoming. He is a rancher and owner of The Campstool Ranch located at Devil’s Tower, Wyoming. The ranch is host to the Genesis herd on BeefChain.io, blockchain technology for Wyoming Certified Beef.



Adam Chapnick:

The security token industry is here, and it's not too late for crypto-enthusiasts and investors of all types to get involved.

Amy Wan:

Coming up on this episode of Security Token Insight, a look at the latest security token investing news, details on the Security Token Industry Launch Event, set for this October in New York City.

Adam Chapnick:

Plus, we catch up with Wyoming Senator Ogden Driskill to discuss the latest blockchain legislation in that state. That and much more is coming up on this episode of Security Token Insight.

Hey everybody, I'm Adam Chapnick.

Amy Wan:

And I'm Amy Wan. Welcome to Security Token Insight, brought to you by the Security Token Academy.

The security token industry is gaining momentum and will provide a key foundation for the evolving financial internet.

Adam Chapnick:

Security Token Academy will provide insights about this new era for security token enthusiasts, investors, and issuers. And, we thank you for coming along on this exciting new journey.

Amy Wan:

Coming up on today's episode of Security Token Insight ... In your security token investing news, the Gibraltar Stock Exchange makes a move into the security token space. Wyoming comes to southern California. We'll take you to the Wyoming Blockchain Event. And, we have a special expert interview with Wyoming Senator Ogden Driskill ... why he wants to make Wyoming a hotbed for blockchain. And, we go one-on-one with James Glasscock of Paratii to discuss the future of security tokens. That and much more is ahead on this episode of Security Token Insight.

Adam Chapnick:

Now, it's time for your security token investing news.

JPMorgan is making a move into the security token space. JPMorgan has filed a patent to issue asset-backed tokens on a distributed ledger. In the patent filing, the company says that a use-case for the distributed ledger "would be a securities offering," which in a blockchain environment would function as an initial coin offering for newly issued security tokens. Hmm...

And, overseas, the Gibraltar Stock Exchange is looking to list and trade security tokens. The CEO of the Exchange said they're seeking regulatory approval and have applied for a license. The Exchange is also looking to deal with conventional securities and hopes to begin the process in the first quarter of 2019.

Amy Wan:

The Security Token Academy is on the leading edge of the security token movement. We've been to security token meet-ups and conferences from coast to coast.

Adam Chapnick:

Security Token Academy was invited to the Wyoming Blockchain Event that was held last month in Santa Monica, California. You might be thinking, "Wyoming ... in Santa Monica?" Well, it was just that. They wanted a warm and sunny location and found it right here in southern California.

Amy Wan:

Wyoming has been on the leading edge of blockchain legislation. You'll learn more on that as we take you to the Wyoming Blockchain Event hosted by DNA Fund. Take a look.

James Glasscock:

DNA has been about community since the beginning. The way I would articulate it is, the people in this room represent the 0.5% of people on the planet that are ... that have taken the red pill. You're crypto. You've owned some. You might be trading it. You might be a superstar trader. You may have launched five or six companies. But, you're the 0.5% on the planet. So, how do we bring the other 99.5% of people on the planet into crypto and blockchain? I think it's community, is going to be one of the ways that we do that. So, thanks everyone for coming out-

Pamela Day:

Hey everybody, I'm Pamela Day. I am the CEO of Paladin Trust. We're a digital custodian shop. We hold, manage, and hedge digital assets for pre-ICO companies/post-ICO companies, funds, individuals, and anyone who requires custodian services, which is pretty much all of you.

Today, I have the great pleasure of moderating this panel, and I think James Glasscock was kind in letting me do this because he knows I've been obsessed with Wyoming for about six months ... following their legislature and starting and actually registering one of Paladin's companies in Wyoming about five months ago. So, I've been following this for a while. I am incredibly impressed to have this esteemed group in front of me.

What I want to start with is ... Let's educate the group with the five laws that are- that, I mean, literally tectonic shift in Wyoming's laws, right? And, the first in the nation. Walk us through the five laws. Give us some bullet points.

David Pope:

Hello everyone. David Pope here, and the first thing I'd like to say is we have a very full house. So congratulations, you just qualified as a medium-size city in Wyoming.

Okay, so when we're talking the bills ... we ha- everyone here me okay? (audience answers, "Yeah.") Okay, so when you're talking the bills, we've got five main bills. And, I'll run through 'em real quick.

House Bill 19 exempted cryptocurrencies from the Money Transmitters Act in Wyoming. And, that was-

Pamela Day:

Think about that folks ... exempt from money transmitters.

David Pope:

Yes. And, I would never say anything bad about California. You guys have been such wonderful hosts here, but anyway ... So then, the second one was House Bill 70. House Bill 70 was the qualified token exemption, which exempts consumptive tokens from the securities laws in Wyoming. And, that was the big one that gained the worldwide attention.

The third one is House Bill 101, which allows corporate record-keeping on a blockchain, and all that implies down the road as well.

The fourth is House Bill 126, which is the one that goes into effect on July 1st, which allows for the formation of series LLCs within Wyoming.

And then, the fifth one is the only one that actually originated in the Senate. And, that's Senate File 111, which exempts cryptocurrencies from property tax within Wyoming. Wyoming has no state income tax, by the way ... all of you that want to compare it to California. And so, what we were, as a group, were afraid of was that then the cryptocurrency transactions could be viewed as taxable in Wyoming. So, Senator Driskill went ahead and helped draft a bill that exempted those.

So, those are the five bills. Any-

Pamela Day:

Thanks for that. Amazing. Right? Think about that guys ... exempt from property tax, and that same bill made cryptocurrency a valid form of trade. So, it actually made it a valid form of trade for contracts and things of this nature.

Rob Jennings:

I get with Tyler and Ogden and say, "Hey, what can we do? Let's start off with the Corporate Records Act." Well one, the cryptocurrency exemption was an easy one. Then came the Corporate Records Bill, which is really what we were pushing. And, so to that end ...

And, I'll hand it back to David here in second because he can talk about really the tax value on Wyoming.

But, it's to me, just sort of looking at this thing, I see this community. I see this forming marketplace that exists, whether Wyoming likes it or not. It exists, this marketplace, these people participating freely in this activity ... they're here whether you choose to accept them or not. So, why don't we choose to accept them? Why don't we invite them into our state, and why don't we start talking about bills and laws that will create an environment of assurance for them? Because I think everybody here, the investors, we want to appeal to the investor, to the developer, and to the consumer, so they all have some assurances that they're in a fair environment to operate. And so, they know that, "I'm not going to be screwed on my investment if I put money into it or..." There's a few checks and balances, but we're not telling them what to do once they get inside that regulatory environment. And, we're not going to come down on them harsh.

So, that's really where this came about. The other bills followed. But, the LLC, the Wyoming LLC, and the cryptocurrency community, the blockchain community, are a marriage made in heaven. That's where this whole thing started. All the other bills, particularly the ICO Bill, was one ... basically, we just said, "Screw it; let's try it, and see what we can get through."

Amy Wan:

On that panel, you heard from Wyoming Senator Ogden Driskill. He's been instrumental in bringing blockchain to Wyoming. We were fortunate to speak with him one-on-one following that panel for more on Wyoming's push into blockchain.

Ogden Driskill:

The Task Force actually came about after the series of blockchain bills.

They were kind of born with Representative Lindholm and myself, along with some other people, searching for new ways for Wyoming to diversify its economy. We were really just looking for ways that we could bring new business to Wyoming, and blockchain and cryptocurrency ... Actually, I can back way up. Tyler and I ran a crypto bill two years before and failed miserably, so we'd had some early experience on straight crypto. And, we moved on with the blockchain bills and did our homework right ... ended up with really a great cast of people helping us. Rob Jennings, Caitlin Long, David Pope, we had a bunch of people. Consequently, we did a job that everybody in Wyoming understood it well enough that it was something that may bring some diversity to our economy.

Far as the tokenization, that's going to be absolutely trendsetting in the United States, and I think it fits in extremely well. It's similar to a REIT on steroids. When you can buy a token in a ranch, you can own a piece of a ranch and have all the benefits of being there. So, I do think it fits, and it's coming. There's going to be some legal issues that fall. That's the other part I can tell you with Wyoming is we're a state that's small and nimble and we're open to anything that's new ... that's not detrimental to our state and can help the economy of our state and the nation. So, we're all-in on trying to create a, kind of a new tech world in Wyoming. You think about us being cattle and oil. We want to be cattle, oil, and technology.

Right now, there's no need on regulations because we're not seeing anything. We're not going to try to be proactive and go out and regulate ahead of it unless it's something that's in our face and glaring. And, if it is, we'll try to deal with it. If not, what we're really trying to do is create a fertile environment for the folks that were here today to look at, "What does it take for my business to flourish?" If you're either a bad player or we've made inadvertent mistakes, we'll take away the laws or restrict them the exact same way we passed 'em. We have every confidence in the world that we can stay on top of it. And so, we're really creating in the state, not just blockchain and crypto, but in business ... how to take the barriers down, how to tell people that we want them to do business here. Do it in an ethical and a great way, and we're going to leave you alone.

The Blockchain Task Force came about after the bills to look at ways that we can further come with more legislation to enhance what we've already done. One of the issues that's come up is the crypto companies can't even open a bank account, not to put crypto in ... they can't open an account to pay their employees or operate their business like any other business. We feel that's wrong. And, it apparently delves from federal banking laws, not from state banking laws, so we're doing the research about looking at creating either a trust or a bank or some type of fiduciary instrument so that we can allow them and welcome them to come to our state. We think it's a good business. We like crypto. We like the people. We think it's a legitimate form of doing business. We're going to do everything in our power to create that system that they have a way to operate.

Two things kill us, bad players and bad actions and actions of government. And, from our end, we're trying to find ways to get around what the government's trying to do. We think it's a legitimate form of business.

Adam Chapnick:

It's great to hear that Wyoming lawmakers are making a positive environment for new businesses to flourish.

James Glasscock, co-founder of DNA Fund and strategic adviser to Paratii, helped organize the Wyoming Blockchain Event. Here how he got involved in the world of blockchain and his thoughts on the evolving security token ecosystem.

James Glasscock:

I started investing in Bitcoin in 2013, and just sort of gradually went down the rabbit hole, later joining DNA, building DNA, launching it in September 2017.

The original reason I got into blockchain is to learn. It's an incredibly complex topic, and we all learn in different ways. Some people read books, do things. For me specifically, it was investing in the currency and kind of learning how it was being used. Fast forward to building DNA, Brock and I had known each other for a long time. My background is primarily in Fortune 500 enterprises, strategy, operations, and business development. They had an idea, and they wanted someone to help execute and build that. And so, that's what we started doing, started building the team in September of 2017 and by May roughly, we probably had about 20 full-time people, 10 part-time people, and 20 portfolio companies around the world. It's far more successful than we ever expected.

I do not believe STOs will replace ICOs. ICO is kind of a term that may or may not go away. It probably will go away, but there will be token sales around utility tokens. The STO conversation is largely a conversation in the United States, thanks to those laws. I think it's just something we have to watch, wait, and see. And especially in STOs, we also have to kind of break that down. Are we talking about assets or dividends or the idea of applying the security token framework to something's that's a utility token ecosystem? I mention that because this is really important. Utility tokens ... the frenzy we've seen over the last year around utility tokens is largely speculative, ungrounded by business fundamentals. That'll change over time.

But with the utility tokens, this is where you see some times 10 or 20 or 50x opportunities. You're not going to see that with security tokens, especially if it's based on dividends or based on hard assets. So, it gets really interesting when you start diving into something they call the illiquidity discount. If you think about a security token around real estate, what are those illiquidity discounts that investors are currently dealing with? And, the funny thing is it's actually it's opaque. Most investors in that ecosystem aren't really even dealing with it, so I'm really excited to see what will the premium be now that we have liquidity with security tokens? It won't be 10x. The premium, could it be 2x? I don't know. Maybe. It's probably more like 0.2x, but there a lot of other benefits to the security token ecosystem so ... yeah.

Adam Chapnick:

We will keep track of the latest blockchain legislation in Wyoming and bring you updates on future shows.

To view more interviews like the ones you just saw, be sure to go to our website securitytokenacademy.com and click on the "Interviews" tab.

Amy Wan:

The Security Token Academy hosted the first ever security token summit in New York City last month. It was the first conference to focus on the emergence of security token trading organizations.

Adam Chapnick:

This groundbreaking, sold-out event brought together the key players in the industry to learn about the new directions in security token trading organizations.

This day-long event zeroed in on security token exchanges and trading organizations. The best and the brightest spoke at our summit, and we captured it all on video. There were keynote addresses from David Weild, former Vice Chairman of NASDAQ, and Bruce Fenton, CEO of Chainstone Labs ... plus, panel discussions, interviews, much more.

You can get an inside view to what the top experts had to say about the future of the security token industry and where security token exchanges and trading platforms are going this year and beyond. You can purchase all of the videos from the event for just $99, and as a bonus, you'll also receive free a one-year membership to the Security Token Academy.

Amy Wan:

We want to let you know that our next event is the Security Token Launch in New York City, set for October 4th and 5th. Come together with security token leaders, experts, and enthusiasts to celebrate the opening bell of the Security Token Industry.

Adam Chapnick:

Our event will feature industry experts including ERC20 creator, Fabian Vogelsteller, and David Weild, former Vice Chairman of NASDAQ, who killed it at the last event.

Highlights include a cruise on the Hudson River on the Spirit of New York yacht during our special networking event to be held on Thursday, October 4th.

Amy Wan:

And, on Friday, October 5th, you'll hear from leaders in the Security Token Industry during our conference at the Conrad New York City as we dive into the core foundations of the Security Token Industry. And, enjoy gourmet breakfast and lunch and networking with industry experts and enthusiasts.

If you are a Security Token Academy member, you can buy your ticket right now before we open up ticket sales to the general public. And, we have special pricing only for our members. So, make sure you use the link on our "Members" page to visit Eventbrite, and get your tickets for this exciting event.

Alright, that's it for today's episode. Be sure to follow us on Twitter, Facebook, Telegram, and Medium.

Adam Chapnick:

I'm Adam Chapnick, and that's Amy Wan. For everyone here at the Security Token Academy, thanks for watching.