The state of Wyoming, which could be considered as the Midwest, seems to be hitting the ground running when it comes to the blockchain and cryptocurrencies.
They have been experiencing several movements on the front, first by establishing the Wyoming Blockchain Coalition. An organization that is supposed to be created to educate citizens in Wyoming about the power of the blockchain and furthermore to stimulate their economy. They will seek to do so by talking about the benefits of it to cut costs, how it can streamline administrative processes and bring about new businesses for the state of Wyoming. At the current moment, the organization is presenting at universities, publishing a newsletter and curating exciting content and more to achieve their goals in building the Wyoming blockchain ecosystem.
The second aspect of how Wyoming is growing is through attracting other blockchain companies. Just recently, a Canadian company has announced that they will be moving a portion of its operations into the state of Wyoming to conduct its various processes. The company, called Blockcrushr labs, has opened up an office in a city called Cheyenne in Wyoming and will be moving forward with their expansion plans as the year progresses.
The third aspect of Wyoming is looking to grow is through blockchain friendly legislation, several representatives and senators from Wyoming are introducing a bill to “exempt blockchain tokens” from securities and transmission laws. This would be beneficial for issuers of tokens.
A representative from Wyoming noted that:
“We view non-securities blockchain tokens as a new asset class that is neither money nor securities, and therefore believe existing money transmitter and securities regulations should not apply.”
The representative continued to state “In many cases, for example, such blockchain tokens are simply prepaid software licenses. If tradeable gift cards and prepaid cell phone minutes are not regulated as money or securities, why should prepaid software licenses fall into those categories?
Wyoming’s consumers will be protected by its strong anti-fraud, and consumer protection laws, which we believe are sufficient to deter bad actors from doing business in the state.”
The members of the state do seem to be looking toward the future and working toward positioning themselves as contributors and participants in that market.
The view expressed above is, of course, one that is shared by many companies and members of the crypto community. Tokens don’t necessarily act as stocks or as money, they can act like one or the other or they can act like both. Unnecessary laws can harm growth and restrict individuals from deriving more value from the blockchain and blockchain based companies.
Clarity in regulation in the United States would be beneficial in saving time and energy for a lot of parties. The SEC currently goes after several companies for soliciting in a manner that they deem to be unlawful while also shutting down and preventing some Initial Coin Offerings from moving forward.
But clarity on the state level, depending on how favorable it may be, would undoubtedly spur interest and should create a further movement in the state of Wyoming in the industry of blockchain and cryptocurrencies.