It is being reported by Forbes that Wyoming has introduced a bill that aims to define cryptocurrency and other digital assets in order to give clarity to how they should be regulated and pave the way for banks to offer digital asset custody. If passed the bill would define most cryptocurrencies the same as “money” which would see it protected under identical rules to the US dollar.
The bill seeks to effectively place all digital assets into one of three categories: Digital consumer asset, digital security and virtual currency. The definitions of each are laid out as follows:
“‘Digital consumer asset’ means a digital asset that is used or bought primarily for consumptive, personal or household purposes and includes:
(A) An open blockchain token constituting intangible personal property as otherwise provided by law.
(B) Any other digital asset which does not fall within paragraphs (iii) and (iv) of this subsection.”
“‘Digital security’ means a digital asset which constitutes a contract, transaction or arrangement where a person invests money in a common enterprise and is led to expect profits from the efforts of a promoter or a third party, and does not include any other asset within the meaning of security under W.S. 34.1‑8‑102(a)(xv).”
“‘Virtual currency’ means a digital asset that is:
(A) Used as a medium of exchange, unit of account or store of value; and
(B) Not recognized as legal tender by the United States government.”
The hope is not only to be a leader in the rise of the digital asset frontier, presumably bringing in business to the state, but it also aims to help spur the SEC towards national regulation by providing a framework that if adopted could help provide a practical use case the SEC can work with in making future decisions.
Caitlin Long, co-founder of the Wyoming Blockchain Coalition, took to twitter to announce the bill, and twitter responded:
1/ TWEETSTORM about #Wyoming’s BIG REVEAL. This is long & info-packed, so buckle in. My native state is about to do bigger things for #blockchain, & the sector is about to pay Wyoming back big-time. Win-win! @Tyler_Lindholm @SenatorDriskill @TraceMayer @ForbesCrypto pic.twitter.com/gP4oWtTmJj
— Caitlin Long 🔑 (@CaitlinLong_) January 18, 2019
This is not insignificant. It’s magnificent. What a precedent.
— rjmcoin (@rjmcoin) January 18, 2019
This is great. Love to hear that somebody in the US is paying attention. Wyoming could get some great advantages by leading this revolution. @nlw suggest this for LRS.
— Vincent Van Bitcoin (@AltToTheFuture) January 18, 2019
Great thread @CaitlinLong_ – thank you – and I’m curious if you know of other states that may be paying close attention to what you all are doing in WYO now, possibly to model their own legislation? I have to think many would be very interested.
— Stacy Conaway (@stacyconaway) January 18, 2019
For now this seems like a huge step in the right direction, though it should be remembered that this bill has only been introduced, not passed yet. Stick with Chepicap for all updates on the future regulation of crypto!