The state of Wyoming has gone ahead to pass a bill for blockchain banking despite the fact that the banking industry unanimously opposed the decision. This is one of the many moves the state has made to show that it welcomes blockchain technology and its integration.
From time, the state of Wyoming has been known to welcome blockchain technology. The blockchain banking bill that was approved by 13-1 legislative committee members now allows banks within the state to offer companies with blockchain based assets financial services. One of the legal experts who has served with the internal blockchain group at Morgan Stanley, Caitlin Long welcomed this news with the following statement:
“The Wyoming legislative committee has passed a blockchain banking bill 13-1 even with the heavy opposition that came from the banking industry. A big congratulations and thanks to all our supporters.
Blockchain Banking And The Industry
A while ago, a specialized blockchain task force was created to focus on everything related to blockchain technology. During a meeting, they discussed several issues from stock revisions, banking technology, special purpose depository banks, all the way to financial technology Sandbox.
The latter outlined many of the challenges that blockchain innovators face. The growing use of digital assets, virtual currencies and the rapid innovation of blockchain technology has left many blockchain startups unable to access reliable and secure banking services. This, in turn, has obstructed the development of blockchain products and services within the marketplace.
The new bill makes it clear that a type of financial institution known as “Special Purpose Depository Bank” will be established to provide blockchain innovators with the services they need to grow. The latter continued:
“By Authorizing special purpose depository banks in Wyoming, we will be offering these innovators the services they need. Wyoming has partnered with financial and technology industry over time to safely grow into a developing financial sector.”
What This Means In The Long Run
When you look at the bigger picture, this may not all be a good thing. Yes, it’s true that having a bank or two dedicated to blockchain technology is a good thing. However, this bill decreases the chances of many bills becoming acting legislation according to Long. She continued:
“The bottom line is that there are already five blockchain-friendly bills that were enacted this year alone. Adding more bills to the ones will elevate the chance of these bills becoming law because right now, they are just committee bills.”
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One of the recently enacted blockchain bills is the “Utility Token Bill” that was passed on the 7th of March 2018. This bill classifies all utility tokens as an asset class. The good thing is that the state is not afraid of the blockchain technology like many others are. Rather than shying away from it, they are embracing it with open arms.