One of the main stumbling blocks for cryptocurrencies is that it is an unregulated market in most parts of the world. The state of Wyoming is hoping to clear up that position within its jurisdiction by introducing a new bill that looks to open its doors to the cryptocurrency market.
Legislators in Wyoming have introduced a new bill which looks to provide a clear framework as to how cryptocurrencies should be viewed within its legal jurisdiction. The new will also looks to allow banks to take custody of them instead of financial institutions. The bill classifies digital assets into three different types: digital assets, digital securities and cryptocurrencies.
Though this is not a new classification system, this clarifies the legal position of these assets. It will make it easier for these assets to get out of the gray area they are in when it comes to legalities. The bill also takes the step of authorizing banks to supervise and handle digital assets with requirements. This is supposed to mirror the SEC’s requirements for being qualified caretakers of digital assets.
The big difference is that while the banks will be holding digital assets, they will not be taking deposits themselves and will only be safeguarding it for others. The big difference this makes is that with banks at the helm, it will allow crypto businesses to operate in 50 states while adding the higher trust factor of having banks in the lead.
The result of this bill is that cryptocurrencies would soon have the same status as fiat money. This would be a big boost for a variety of businesses ranging from coin-lending to Bitcoin exchanges. An additional bonus from the bill includes digital securities being treated like uncertificated securities under the (Uniform Commercial Code) UCC.
Big Move For Wyoming
These changes are just the tip of the iceberg for the bill. Many experts agree that this bill is going to be a game changer for Wyoming. This is mostly because the state has become an attractive destination for many cryptocurrency businesses with this bill. It seems that the state is hoping to do what South Dakota and Utah did with credit cards back in the 80s. With a friendly bill like this, Wyoming can hope to capitalize on the crypto industry.
In a statement, Caitlin Long, Co-founder of the Wyoming Blockchain Coalition said
Wyoming spotted an opportunity to lead in this field last year, and realized it had just as many advantages in competing for this nascent industry as any other place – and more so. Blockchain is software, so it’s global. A line of code doesn’t care who wrote it or where it was written. As Joe Lubin said when he spoke at WyoHackathon last fall, there’s no reason why the next Google can’t be here in Wyoming.
