Wyoming recently passed thirteen new blockchain laws. The passing of this bill makes Wyoming the first state in the United to provide a welcoming, comprehensive legal framework. This framework will enable blockchain tech to excel, both for firms and individuals. These bills allow for creativity and innovation. They are aimed at bringing jobs, revenue, and capital to the state.
Wyoming leads the pack in asset law
Technology and law are two separate systems. For a new technology to gain mainstream adoption, the technology and law have to be backward compatible. That is exactly what Wyoming has just done for blockchain technology. Wyoming is now the “Delaware of digital asset law,” a reference to the lead of Delaware in corporate law.
Over twelve other states and Congress in the US are now following the lead of Wyoming by passing this same bill. But they are just enacting one or two of the bills passed by Wyoming. However, no other state seems to be close to Wyoming. It’s an extremely enormous order for any legislature to pass 13 bills in one topic in a short time frame.
The Highlights of the New Blockchain Laws of Wyoming
Here are some of the highlights of the newest bills passed by Wyoming.
- The new bill creates a fintech sandbox that provides regulatory relief to innovators from existing laws for a period of three years. It is reciprocal with fintech sandboxes in the United States and across the globe.
- The law recognizes direct property rights for owners of digital assets, including digital currencies, utility token, and digital securities. The new commercial law of Wyoming shows the actual nature of digital assets, P2P or directly owned assets.
- It authorizes a new kind of chartered depository institution in the state to offer fundamental banking services to blockchain as well as other businesses. However, there are some basic requirements the bank has to meet. The bank must have 100 percent reserves. It can’t lend to individuals or companies. It is strictly for business depositors, and FDIC insurance is not compulsory. Such banks could start operations by the 31st of March 2020.
- It also authorizes the first qualified custodian for digital assets. Banks in the state can carry out such operations as early as Sept. 1st this year. The digital asset custodians in Wyoming will stand out over other states in the US. This is because the state will respect the DIRECT ownership nature of digital assets. The custody services will not be like traditional securities custody services. This is because custodian investors based in Wyoming will still own their digital assets directly under custody as BAILMENT. This means they will maintain direct ownership while only giving up control. Presently, institutional investors are forced to be de facto creditors of the custodians of their securities. This is due to the fact that all securities traded publicly are not owned directly.
Institutional investors will control their assets
The digital asset custodians of Wyoming will only be service providers to institutional investors. This means they will still have control over their digital assets.
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