Wyoming has become the first US state to empower the ownership of cryptocurrency by passing its second and third Senate readings of Bill SF0125. The bill will now go before Mark Gordon and could become law as early as the next week.
The legislation allows the residents of Wyoming to own cryptocurrencies with legal protection by recognizing them via property rights.
Caitlin Long, former Wall Street veteran and Wyoming Blockchain Coalition member shared the news and her excitement on Twitter with,
“Wyoming law recognizes property rights in the DIRECT ownership of digital assets. Property law in US is determined by states, not the feds. WY not only did it first but did it right!! This applies to all types of digital assets. In other words, you're not forced to own digital securities thru an intermediary-that's HUGE! Blockchain tech enables DIRECT ownership of assets & now the law does too. You can still choose indirect ownership (u shouldn't), but u aren't forced to.”
Wyoming has become the first US state to do so and this could result in a growing interest from businesses and customers as Long further shared,
“This means (blockchain companies) will (probably) want to apply WY law to your contracts, domicile here, (and/or) have a physical presence here.”
In the US, state legislators have all the power over property rights which means across the country there are different jurisdictions in different areas. This, in combination with the securities laws and aggressive pursuant of its violations, makes it daunting and hard for cryptocurrency business to get started.
Now, the fact that Wyoming protects property rights, Long further carries on that it means institutional investors are protected far better here than New York. She further detailed that institutional investor that are prohibited from owning assets they manage
“can rest assured that Wyoming's digital asset custodians are actually solvent.”
“Have fun watching the transfer of capital away from NY (and) into WY in the coming years, (especially) as securities are increasingly issued on (blockchains.)”
The transfer has already begun as “We’re moving to Wyoming next to Colorado in the United States,” shared Cardano creator, Charles Hoskinson in early January.