Banks unhappy as Wyoming legislative committee passes blockchain bill

Wyoming has passed legislation which paves the way for the creation of a crypto bank in the state. Further details here.

The move was enthusiastically welcomed by Caitlin Long, formerly of Symbiont.io and Morgan Stanley and Co-founder of the Wyoming Blockchain Coalition.

The earliest the bank could open is late 2019.

Wyoming has emerged as something of a trailblazer in this space. Earlier this year, the state passed, and signed into law, a total of five pro-blockchain bills.

• HB 19 provides an exemption for virtual currency used within Wyoming from money transmitter laws and regulations
• HB 70 provides that a person who develops, sells or facilitates the exchange of an open blockchain token is not subject to specified securities and money transmission laws
• SF 111 provides that virtual currency is not subject to taxation as “property” in Wyoming
• HB 101 provides for the maintenance of corporate records of Wyoming entities via blockchain so long as electronic keys, network signatures and digital receipts are used
• HB 126 modifies the state’s corporate code to permit the formation of “Series LLCs.” The intent of this legislation is to promote it as a jurisdiction of choice for securities formation and to compete with Delaware and Nevada for corporate registration revenue.

“It all comes down to economic diversification. Wyoming has really concentrated on that over the past two years,” said Rep. Tyler Lindholm.

“We’ve been looking at different technologies, new ways to expand. After doing some research and reaching out to some industry experts, it was blockchain, digital currencies, and ICOs that stuck out. Looking at the situation, it was clear that no state had taken the plunge on any kind of regulatory frameworks, particularly regulatory frameworks that were beneficial and would attract those kinds of businesses. We want economic diversification. We want tech jobs. More importantly, we want new and young businesses to consider Wyoming.”