Senate of the U.S State of Wyoming has passed a bill that recognizes cryptocurrency as money and affords it the same status as other legal tenders. With the passage of the bill, Wyoming has reinforced its position as the foremost proponent of the cryptocurrency market and its associated blockchain technology in the United States.
The bill, which was introduced on the 18th of January in the Senate, was passed by a vote of 28-1. Not only is it notable for accepting cryptocurrency on the same lines as fiat money but, it also provides a rare legal clarity to the filed by classifying crypto assets into three namely, digital consumer assets, digital securities and virtual currencies. The bill also recognizes digital assets as legal property and authorizes banks to supervise and hold them in custody in trust funds.
The website for the State of Wyoming’s legislature has suggested that the bill is likely to go into effect from the 1st of March, even though the Bill is presently on its way to the House for debate. Banks will have 60 days following 1 March to provide custodial services for such crypto-assets, according to the bill. Check the Official Document of Wyoming state government website.
(i) “Digital asset” means a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency;
(ii) “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.
(iii) “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);
(iv) “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.
(b) The terms in paragraphs (a)(ii) through (iv) of this section are mutually exclusive.
The passage of the bill is another step towards realizing Wyoming 1st District’s Senator Ogden Driskill’s goal to make Wyoming the “Silicon Valley of Blockchain and Cryptocurrency of the nation and arguably – the world.” Over and above, the two bills related to blockchain the Wyoming Senate have already passed.
The development is also good news for financial services such as Coinbase, Fidelity and Bakkt that are now free to operate in the state without the risk of incurring any legal cost. Coinbase had in fact, only recently re-started its operations in the State after a brief hiatus owing to the lack of legal clarity jeopardizing their operations.