Wyoming has always been one of the most progressive states in the U.S., and it’s taking up this role once again in the digital currencies space. The state has now enforced over two dozen laws catering to the industry and is attracting some big names in the industry.
As one of the first states to have limited liability companies (LLCs) as well as the first to give women the right to vote, it’s no surprise that the state is pioneering in the field of digital currency regulation.
The state has now passed 26 new laws, all catering to the digital assets space. The biggest one so far is centered on a new type of charter that gives quick approval for new digital currency banks. As CoinGeek reported, the Wyoming DAO Law also set the stage for the first legally recognized decentralized autonomous organization in the country.
Caitlin Long has been at the heart of the Wyoming digital currency-friendly movement. Long is a Wall Street veteran who once served as a managing director at Credit Suisse and Morgan Stanley. She now heads up Avanti Financial Group, a Wyoming bank that bridges the divide between digital assets and traditional finance.
Recently speaking to CNBC, she stated, “What Wyoming did was just create a welcoming legal environment, clarifying that this industry is lawful and does exist in a recognized manner. Most of the crypto industry in other states is just in a legal and regulatory grey area.”
While the legal clarity is the main attraction, Wyoming tops that up by having no personal income tax and plenty of cheap energy sources.
Wyoming’s Senator Cynthia Lummis is just as sold on the digital currency dream as the state’s residents. She was among those fighting for digital currencies in the recent Infrastructure Bill. She told CNBC that the state is bringing in more revenue and tech jobs thanks to its digital currency-friendly stance.
There are concerns, however, that Wyoming may be shouldering all the responsibility for the digital currency firms but not getting as much in return. For one, since the digital currency transactions aren’t taxed, the direct revenue in the state’s coffers from such activity is minimal.
And while the state has claimed that it’s relying on job creation in the state by the companies, a majority of digital currency firms have a remote-first hiring process. Take Kraken—whose CEO admitted openly to committing bank fraud on Twitter—a major exchange that set up shop in Wyoming to take advantage of the friendly laws. As of a month ago, it had 162 job openings for remote roles but had just three openings for Wyoming residents.
Watch: U.S. Representative Bill Foster on Blockchain Policy Matters
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