Decision makers all over the world have been recognizing benefits of the blockchain technology, which is beneficial for cryptocurrencies as well. Several US states have recently adopted respective legislation, while Wyoming representatives say its blockchain legislation can be a blueprint for other states, even the federal government.
Wyoming’s House of Representatives unanimously voted this month to pass two blockchain bills: the “utility token bill” and the “bitcoin bill.” These bills are now expected to be approved by Wyoming’s State Senate.
Once approved, the Utility Token Bill will exempt some utility token developers or sellers from securities regulations. To fall under provisions of this bill, the token cannot be sold as an investment, and its seller cannot have joined a repurchase agreement or an agreement to find a buyer for the token. This development could be considered as a hedge against SEC taxation for cryptocurrencies.
The Bitcoin Bill, in its turn, will exempt cryptocurrencies from the Wyoming Money Transmitter Act, which required money transmitters to hold 25% of the value of the tender to be transmitted. Back in 2015, this legislation made such companies as Coinbase pull out of Wyoming, leaving the state without access to kiosks with which to purchase cryptocurrencies.
“We’re the first legislative body in the world to define that there’s a difference between a utility ICO and a security ICO, and that’s got a lot of blockchain folks excited,” says Tyler Lindholm, a member of the Wyoming House of Representatives. “It is a new asset class, and we’re going to recognize that in the state of Wyoming.”
Wyoming is already seen as a blockchain and cryptocurrency friendly state due to its fiber-optic bandwidth and cheap power. The new cryptocurrency bills will attract cryptocurrency businesses to the state and eventually turn it into the most progressive US crypto hub.