New Wyoming Bill ‘SF0125’ Set To Make Crypto Custodianship Permissions With Banks Possible
It looks like Wyoming might become the first state in the United States to give banking permissions for crypto and digital assets after a new bipartisan law is passed. Bill SF0125, which was first showed to the lawmakers last Friday.
The new law would transform digital assets like Bitcoin into property. The law would also be able to establish a framework that would help banks that are interested in offering custodial services for crypto companies and would determine the most important standards for this kind of service.
Coindesk, which has reported on this story, has talked to Caitlin Long, the co-founder of the Wyoming Blockchain Coalition, which is partly responsible for how the state is so eager to let crypto regulation pass. According to her, a lot of companies are setting up in New York, but now more companies are interested in Wyoming as well.
Why? Because according to Long, it is easier to set up an account there and the state has a clearer legal status for this new kind of asset as well as licensed that are aimed at banks. Caitlin Long believes that no other state is providing such clarity at the moment and this is important for Wyoming and the state wants to be very progressive in the area.
The bill is very uncontroversial as it is a bipartisan law that was created with the support of Wyoming’s House and Senate members. The list of sponsors is as follows and it includes Drew Perkins, a Republican that is the current president of the Senate.
Others are vice president Ogden Driskill (Republican), Chris Rothfuss (Democrat) and Steve Harshman (R.) and Tyler Lindholm (R).
According to Long, the introduction of this law is just the first step of a process that is considerably larger and intends to help the state to become new crypto and digital hub.
She believes that “anything can happen” until the governor signs the bill, but confirms that there is tremendous momentum behind the law and that the support is clear, which makes it very possible that this law will become a reality, something important for the coalition and everybody lobbying for it.
According to her, the bill is a “labor of love” and it gives the industry what is needed the most in the country: legal clarity. She believes that even if the most hardcore and purist Bitcoin evangelists are against the government, it is important to have this clarity in order to protect the investors, as they will know how their assets are legally defined in Wyoming.
Another win, in case the law passes, is that cryptos would not be defined as securities. This is important because securities need to be stored by custodians and they do not follow the same rules that people want cryptos to follow.
This could force the owners to treat their assets in a different way, which could have caused issues with time. Now, if the proposal is actually accepted, all token holders will finally get some clarity if they choose to invest in Wyoming.