Wyoming Allows Insurance Companies to Invest in Bitcoin and Other Cryptos Starting July 1
Wyoming authorities have taken many positive steps towards the crypto market with its blockchain and crypto custody rules. The state also became the first one to pass a bill that gives direct property rights to cryptocurrency owners and might be seeing a crypto bank soon as well.
Now, in another first, they are making it possible for insurance firms to invest in Bitcoin and other crypto-assets by amending its insurance code, as per the reports. The new law will be effective from July 1, 2020.
“YES! Insurance cos in Wyoming will be able to invest in bitcoin & crypto as of 7/1/2020 (this was recently signed into law by Governor Gordon). Most likely insurers will offer this as part of variable life policies rather than whole life, since NAIC capital charge will be high,” said Caitlin Long, a Wall Street Veteran and the founder and CEO of Avanti, the Crypto Bank coming to Wyoming.
With this first provision of its kind in the nation, domestic insurers will be allowed to invest in digital assets. Digital assets are defined in Wyoming law as
“a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency.”
As per this provision, “digital consumer assets” which are digital assets used or bought primarily for consumptive, personal or household purposes are excluded. These also include an “open blockchain token constituting intangible personal property” such as utility tokens.