The state of Wyoming has created a new asset class for cryptocurrencies. They are not regarded in the state as utility tokens.
The house bill 70 was passed on March 6. It regards cryptocurrencies as utility tokens. This provides them with the exemption from the security regulations in the state. The bill was also signed by GovMatt Mead on March 8. This turned it into a law.
According to the law, the buyer and seller of cryptocurrency tokens are exempted from the state -related regulations. The only condition is that they should sell the tokens in exchange for goods or services. The tokens should not be marketed as an investment. As long as, they are used for actual currency purposes, they are exempt from the state related regulations.
According to the co-founder of Wyoming blockchain coalition, Caitlin Long, Wyoming has definitely taken the right step by considering cryptocurrencies to be a separate asset class. Also, according to him, this will also increase the usage of cryptocurrencies in actual forms of currency for transactions. He further stated that even Washington DC is trying to figure out how to regulate the cryptocurrencies.
According to him, the approach which the state is taken will put the cryptocurrencies directly under the federal law. This will indeed mean that the SEC will also agree with this particular definition of cryptocurrencies.
With many of the authorities as well as governments all over the world are trying to identify cryptocurrencies, it definitely sets a precedent. It is very difficult to consider cryptocurrency as a normal commodity or as a normal security. This is the reason why this is actually a positive news for cryptocurrency enthusiasts. Also, the State of Wyoming now believes that the federal government will be able to take clue from the bill which it has passed. This will indeed help the federal government create proper rules and regulations pertaining to cryptocurrencies as well. With the advent of such rules and regulations, the cryptocurrency market will expand further.
Many of the cryptocurrency enthusiasts believe that this is actually a positive move for the cryptocurrencies. As more and more regulations get enacted, it will become easier for the investors to invest in cryptocurrencies. This will open up the market wide enough for many retail investors to participate directly. This will increase the demand of cryptocurrencies and therefore, the market size will increase as well.