Wyoming Bill Would Clear the Way for Crypto Custody at Banks

- Advertisement -

Wyoming may soon become the first state in the U.S. to provide clear banking permissions for cryptocurrencies and digital assets.

A bipartisan group of state legislators introduced SF0125 to the government on Friday, which, if passed, would classify digital assets as property within existing laws. It would also establish “an opt-in framework for banks to provide custodial services for digital asset property as directed custodians,” determine standards for such services, clarify how Wyoming courts might classify digital assets and more.

Caitlin Long, co-founder of the Wyoming Blockchain Coalition, told CoinDesk that the bill is a major step forward for the state, and could prove a boon for crypto startups and users alike.

“A lot of companies are setting up as New York trust companies … the [Wyoming proposal] is a much better license than a New York Trust license because it’s [aimed at banks] and it’s in a state that has clarified the legal status of digital assets. Those two things are equally important,” she said. “There isn’t another state that’s providing that clarity.”

One of the most notable aspects of the bill is the support it has upon its introduction. The leadership of both Wyoming’s House and Senate are cosponsoring the bill, which includes members from both the Democratic and Republican parties.

On the list of sponsors are senators Drew Perkins (R.), president of the Senate, Vice President of the Senate Ogden Driskill (R.) and Senate minority leader Chris Rothfuss (D.). Also on board are representatives Steve Harshman (R.), Speaker of the House, and House Majority Whip Tyler Lindholm (R.), alongside a handful of other representatives and senators.

- Advertisement -

That being said, getting the bill introduced is just the first step.

“This [bill] was just released, it still has to go through everything,” Long noted. “Anything can happen in a legislative process, it’s not done till the governor signs the bill, but it has a lot of momentum behind it and a lot of support.”

She continued to say that just getting the bill to this point was a “labor of love,” adding:

“It truly gives the blockchain industry something I think it needs, which is legal clarity to bring it to the next level, and even the bitcoin purists who would be opposed to intermediate [entities] being in [charge] would take comfort in knowing they now have legal status for their assets.”

- Advertisement -

There had also been an alternative proposal in the works, Long explained, which would have classified cryptocurrencies similarly to securities and would have forced owners to store such assets through intermediaries.

“We would have lost direct property rights of [those assets],” she said. “There was momentum building behind that proposal … and Wyoming went in a different direction that’s much better for cryptocurrencies.”

Wyoming Senate Room image via Shutterstock



Previous Articles:

- Advertisement -

Latest

TON Blockchain Hit by Outage, Block Production Halts Temporarily

The Open Network (TON) blockchain experienced a temporary outage on June 1, stopping block production for about 40 minutes.The issue was fixed quickly by...

Pi, IMX, ZBCN in Focus as Key Token Unlocks Threaten More Losses

The crypto market experienced a sharp drop as Bitcoin fell from $111,900 to below $104,000, resulting in widespread altcoin declines.Investors are closely watching key...

Crypto’s “Inverse Cramer”: Trader Gains Millions Opposing James Wynn

A trader known as James Wynn became notable for a $1 billion Bitcoin short position on the Hyperliquid platform.Other crypto traders have started to...

Bitcoin Drops 10% From Highs Amid Quantum Computing Warnings

Bitcoin dropped nearly 10% from its record high, falling close to $103,000 after reaching $112,000 last week. BlackRock warned that advances in quantum computing could...

Czech Justice Minister Resigns Over $45M Bitcoin Donation Scandal

Czech Justice Minister Pavel Blazek resigned after controversy over accepting and selling Bitcoin from a convicted criminal.The Justice Ministry auctioned nearly 500 Bitcoin, raising...

Must Read

How to Check The Rarity of An NFT

Whenever you invest in an NFT collection, you might have noticed that some NFTs are more expensive than others. NFT collections are often made...