According to former managing director of Morgan Stanley, Caitlin Long and Tyler Lindholm a member of the Wyoming House of representatives on the Republican ticket, Wyoming is taking major strides to become a blockchain haven and is welcoming all members of the blockchain community to be part of it.
In the forefront of this onslaught is Wyoming Blockchain Coalition, a grassroots group that is pushing for legislation of several rules that will benefit the blockchain community and in turn, benefit the state of Wyoming.
A package of the blockchain bills is set to be introduced. They will focus on two characteristics that will make the state attractive to the blockchain industry: strict privacy laws that govern LLCs formed in Wyoming and zero corporate income/franchise taxes. To take advantage of these laws, companies won’t necessarily have to physically locate in Wyoming, just like not every Boston corporation is located there. This is great news for any company that decides to do its business there.
Also, the state capital, Cheyenne, has cheap power and immense fibre-optic bandwidth. Something that is guaranteed to pique the interest of potential investors.
One of the bills introduced is H.B.0070 which will exempt tokens that are issued on an open blockchain from the states money transmitter and securities laws. But this will only be applicable if the token is not marketed as an investment and it can be exchanged directly for services and goods. This bill is also set to exempt token exchanges and people exchanging tokens from being deemed as dealers/brokers under the state law. This law has even garnered the support of the speaker of the house.
Their view is that blockchain tokens fall under a new asset class that is neither securities nor money. And they believe the existing regulations on money transmitter and securities shouldn’t apply.
So, if blockchain tokens are to put it simply prepaid software licenses, they end by asking a simple question, if prepaid cell phone minutes and tradable gift cards are not regulated as securities or money, why should these prepaid software licenses be put in these categories?
Feel free to leave a comment and let us know what you think of these new developments in the state of Wyoming and what does this mean to the blockchain community? Do you think Wyoming is set to be the blockchain haven?