Wyoming Paving the Way for Crypto Regulations
Written by: Mary McCarthy
Wyoming has long been one of the most crypto-friendly states, and they have established itself as a veritable playground for digital asset regulations. Wyoming has embraced cryptocurrency and blockchain technology through extensive legislation, and they were the first state to pass a bill for crypto-bank charters.
The state has passed numerous bills dedicated to cryptocurrency and blockchain technology. Perhaps the most notable is house bill 74, which stipulates that digital asset companies can apply for charters to become special purpose depository institutions (SPDI). Bill 74 made Wyoming the first state to pass charter legislation for banks and cryptocurrency to work together in this way. The charter system does not require an SPDI to be insured by the FDIC (Federal Deposit Insurance Corporation), but the trade-off is that they must be fully reserved. Limiting risk and allowing greater security for investors has proven to be fundamental in cryptocurrency legislation.
In a statement, Gov. Mark Gordon said, “Wyoming’s new charter will allow those using digital assets, like cryptocurrency, to access reliable financial services, protect consumers, and allow businesses a way to hold digital assets safely.” In 2020, Kraken became the first crypto exchange company in Wyoming or elsewhere to receive a charter to operate as a special-purpose depository institution.
A key to getting so much digital asset legislation passed was the formation of a dedicated cryptocurrency committee. House Bill 27 established the Select Committee on Blockchain, Financial Technology, and Digital Innovation. This committee was formed with the specific purpose of working with lawmakers to structure cryptocurrency legislation for Wyoming. The cooperation between lawmakers and this committee has set Wyoming up to be a crypto-friendly state for years to come. The state has embraced the use of smart contracts, digital currency in business, and the entire realm of digital assets.
Wyoming lawmakers have opened their doors to the world of cryptocurrency and the business that comes with it. They have paved the way for other states to enact a regulatory environment for digital asset business that protects investors while opening up opportunities for cryptocurrency to mesh with a traditional business. If you see new cryptocurrency legislation being discussed in your state, there’s a fair chance Wyoming is already on it.
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