The cowboy state of Wyoming in the United States of America has given a boost to the state and indeed the country’s cryptocurrency industry by permitting Bitcoin [BTC] holders to have property rights.
Wyoming saw their state Senate pass the second and third readings of Bill SF0125 – Digital assets-existing law, which would classify virtual currencies under ‘property’, allowing users to hold cryptocurrencies without fear of any government sanctioned regulation and availing third-party storage services for the same.
Bill SF 0125 stated:
“AN ACT relating to property; classifying digital assets within existing laws; specifying that digital assets are property within the Uniform Commercial Code; authorizing security interests in digital assets; establishing an opt-in framework for banks to provide custodial services for digital asset property as directed custodians; specifying standards and procedures for custodial services under this act; clarifying the jurisdiction of Wyoming courts relating to digital assets; specifying applicability; authorizing the promulgation of rules; and providing for an effective date”
According to the United States’ legal procedure, individual states have jurisdiction over the property rights within their boundaries and hence, the legislation will differ from state-to-state.
Companies, therefore, now have a free reign over the state they decide to set-up shop in, depending on the favorable regulations available. Since Wyoming looks to be a better option than most states in the US, blockchain and cryptocurrency companies may resettle there.
Caitlin Lon, a member of the Wyoming Blockchain Coalition was delighted with the news and stated:
“1/ BOOM! #Wyoming just recognized clear, direct property rights for #digital assets by passing SF125! This means #blockchain cos will prob want to apply WY law to your contracts, domicile here, &/or have a physical presence here. Thx again to the army of ppl who helped over months.”
Furthermore, the new legislation will also protect the property rights for large scale institutional investors. With 2019 heralded as the year of institutional investors looking at the developments with Nasdaq, the NYSE, the Bitcoin ET and BTC Futures, this announcement from Wyoming is indeed crucial to the overarching industry.
This legislation will also peg Wyoming ahead of the state of New York on the list of the cryptocurrency-friendly states, with Long stating the same:
“Wyoming protects PROPERTY RIGHTS &, for institutional investors who must own indirectly, it protects ##investors far better than ##NewYork does.”
“Have fun watching the transfer of capital away from NY & into WY in the coming years, esp as securities are increasingly issued on #blockchains!!!”
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