The transformation of Wyoming into a blockchain booster can be considered somewhat legendary in the Cryptocurrency circles. Lately, the rigid money transmitter laws meant residents could not be able to use their Coinbase account. It has been noted that over the past two years, Wyoming has enacted to 13 blockchain laws along with a bunch of proposals. The co-founder of the Wyoming Blockchain Coalition, Caitlin Long says that the ethos of the blockchain is very similar to the ethos of the Wyoming.
Wyoming’s push is a reflection of the patchwork of state laws of the nation that has been created in the absence of clear federal rules. The Bitlicense regime of the state that began in the year 2015, involves a rigid vetting process for those companies eager to deal with the New York residents, prompting to complaints that it deters innovation while the legislators in Wyoming along with the neighbouring Colorado and Montana see this as an opening.
Two years back, Lindholm and Long had first partnered on the blockchain legislation where Long who is a former executive at Morgan Stanley became interested when she discovered that the state regulations has prevented her from donating Bitcoin to the University of Wyoming. Lindholm is a long time Cryptocurrency enthusiast who had previously tried to tackle the issue but unfortunately, his fellow legislators mostly associated the Cryptocurrency with drug sales and scams.
Long says that their fortunes improved by casting the Cryptocurrency as a means to replace flagging state revenue from the coal industry. Lindholm has cofounded his own blockchain start-up last year and named it BeefChain that verifies the origin of the premium Wyoming cattle, arguing that the state is on the route to attract companies offering them over a $100 filing fee and a Post Office Box in Cheyenne. He has pointed to a pair of pair of bills passed in February as the initial step furthermore establishing a new type of Cryptocurrency friendly banking license along with the rules that allow the banks to hold digital assets. The banks that are chartered under the license would not be FDIC backed and are unable to lend, with a requirement to hold over 100 percent of their liabilities in reserve. They also would have to set up a physical office in the state. There is one thing to consider for Wyoming that there soon might be fewer opportunities for the state to distinguish itself in case the federal policy comes into clearer focus and as well as pre-empts state rules.
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