The cryptocurrency scene is yet to find definitive means of operation, both in terms of regulations and market fundamentals. This is stemming from the fact that the market is still in a regulatory grey area. Also, many traditional banking institutions are still not willing to offer their services to the sector. However, reports of Wyoming leading cryptocurrency campaign are encouraging.
Hibusiness reports that the State of Wyoming is “targeting a legislative solution” to the lack of official support for cryptocurrencies. Particularly, the state’s legislators lament the fact that the cryptocurrency sector lacks proper legislation. As a result, traditional banks and other financial institutions are not ready to deal with a sector that lacks proper rules of engagement.
Task Force in Wyoming Leading Crypto Campaign
Specifically, the new legislation aims to provide “special-purpose depository institutions” that will encourage the cryptocurrency and blockchain sector to flourish. To achieve this, the state constituted a special task force that will spearhead the effort. The task force will include state senators and representatives, Hibusiness reports.
Additionally, the task force will incorporate non-legislative members who will deliver technical assistance. One such member is Caitlin Long, who Hibusiness terms as a “Wall Street veteran.”
Interestingly, this is just another step in the wide-ranging effort by the state to attract blockchain startups to the region.
Forbes reports that the US government is not clear on the direction to enforce cryptocurrency regulations. In March, the publication reported that Wyoming passed a bill that aimed to define the digital assets. As per the magazine, Wyoming’s legislative body passed House Bill 70 that would go a long way towards defining cryptocurrency regulations. Particularly, the law labels the cryptocurrencies as utility tokens.
A Money Warehouse
Furthermore, Wyoming’s House Bill 70 clarifies that the new institution is not a bank in the traditional sense. Essentially, the institution will create regulated accounts to allow crypto-related business to happen in Wyoming, Star Tribune reports.
Quoting Tyler Lindholm, a state legislator and a co-chair of the blockchain committee, Star Tribune relays,
“This bank — owned, operated and insured by approved “members” decided on by a board of industry professionals — will not be able to loan money and will be subject to a set of strict regulations set by the state’s Division of Banking to ensure its operations are on the up-and-up.”
Specifically, the lawmaker observes that the new institution will be “essentially a money warehouse.”
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