Wyoming Passes New Blockchain Laws with Hopes of Stimulating Economy via Jobs Creation

Wyoming Passes New Blockchain Laws

A year after passing several laws defining the legal framework of blockchain and cryptocurrencies, Wyoming has passed an additional few laws to advance blockchain technology for companies and individuals.

Steve Lupien of Digital Trade Asset Association stated that according to him, the state passed the legislation to promote job creation. In his words,

“One of the most important things for Wyoming happened when former Governor Mead created the Wyoming Governors Blockchain Task Force. This was unbelievably forward thinking, as this task force consists of industry experts such as Caitlin Long, along with legal experts who understand blockchain technology. These experts spent a year looking at what Wyoming could do to advance blockchain adoption, with the ultimate goal of creating jobs.”

Currently, the two most significant drivers of the state’s economy are tourism and mineral extraction. However, these industries are having a hard time because surrounding states are attracting Wyoming’s workers. The hope is that blockchain technology will bring more business back into the state. Lupien stated

“There is a bit of a challenge with Wyoming’s boom and bust economy. As the coal business declines, the Wyoming Governors Blockchain Task Force force, which DATA is also a part of, looked for opportunities to bring capital into the region. We looked at blockchain and said, ‘if we create enabling legislation, then we can bring this industry into Wyoming and create more jobs.’”

The task force has been instrumental in drafting legislation for the proposed bills, which were signed into law and have gone into effect this month.

At this point, there is no indication as to whether the laws will be successful in drawing more jobs and industry to the state. However, Lupien noted that he’s seeing a change – a number of organizations are shown interest in establishing banks under the new laws. As he stated,

“We know the new bills will bring in more jobs and capital. For instance, SF0125, the custody bill, is game changing for digital assets because it defines property ownership. This law authorizes banks as qualified custodians for digital assets. The SEC has never allowed this, but Wyoming is now defining direct ownership of digital assets like property. Now, businesses that set up in Wyoming will view digital assets as custody. In turn, this will bring in capital from institutional investors who by SEC law were required to use a third-party custodial service when investing over $150 million.”

According to DATA member Caitlin Long, banks will be able to start operations in September of this year. She added,

“Wyoming’s digital asset custodians will stand out above all others because they will respect the direct ownership nature of digital assets! These new custodians won’t be like traditional securities custodians, because for a Wyoming-based custodian investors will still directly own their digital assets under custody as a bailment, which means they retain direct ownership while merely giving up control (much like valet parking). In sum, Wyoming will become known as the home of solvent, investor-friendly digital asset custodians to which investment fiduciaries are likely to migrate over time.”

Wyoming’s approach is not revolutionary though. South Dakota applied such a strategy in the 80s by altering its usury laws, which rode caps for rates and fees. Doing so enabled more business to establish itself in the state.

At this point, Wyoming may be in a good position when it comes to blockchain and cryptocurrency technology. Several companies have noted their plans to move to Wyoming, such as BeefChain. Further, Wyoming has been able to do what may take other states much longer. According to Long,

“More than a dozen other states have already passed or are in the process of passing bills that incorporate the Wyoming language. For example, Colorado recently enacted a utility token bill quite similar to the bill Wyoming enacted last year. However, I doubt other states will catch up to Wyoming’s lead, simply because legislatures rarely enact 13 bills on a single topic in a short time frame, especially when another state has already grabbed the first mover advantage.”

At this point, it will be interesting to see the change that Wyoming’s economy goes through in the coming years.

The views and opinions expressed in this article Wyoming Passes New Blockchain Laws with Hopes of Stimulating Economy via Jobs Creation do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research. In rounding off this piece Wyoming Passes New Blockchain Laws with Hopes of Stimulating Economy via Jobs Creation, here’re the Top prominent words: Blockchain Laws With Hopes. Blockchain Task Force. Economy Via Jobs Creation. Governors Blockchain Task. Governors Blockchain Task Force. Hopes Of Stimulating Economy. Laws With Hopes Of Stimulating. New Blockchain Laws. New Blockchain Laws With Hopes. Passes New Blockchain. Passes New Blockchain Laws. Stimulating Economy Via Jobs. Stimulating Economy Via Jobs Creation. Wyoming Governors Blockchain. Wyoming Governors Blockchain Task. Wyoming Governors Blockchain Task Force. Wyoming Passes New Blockchain. Wyoming Passes New Blockchain Laws.

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