Wyoming Authorities Categorize Cryptos into Three Broad Groups
Wyoming has categorized blockchain-based cryptoassets into three main groups, digital consumer assets, digital securities, and virtual currency, to enable investors, legal authorities, as well as financial institutions, to easily distinguish between all types of digital assets and handle them optimally, reported finder on February 4, 2019.
Three Formal Classification for Cryptocurrencies
In a new bill titled “Digital Assets Existing Law,” the U.S. State of Wyoming has defined digital assets as a “representation of economic, proprietary or access rights that [are] stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency.”
The bill is sponsored by Senator Nethercott, Driskill, Perkins, among others, and aims to classify distributed ledger technology (DLT) based digital assets within existing Wyoming laws. The piece of legislation specifies that cryptoassets are property under the uniform commercial code and presents a robust framework for banks to offer clients crypto custodial services and authorize security interests in digital assets amongst other functions.
Wyoming Demystifies Cryptos
As stated in the document, lawmakers have made it clear that virtual currencies are not officially recognized as legal tender by the U.S. government, but can nonetheless be used as a medium of exchange, a store of value, or unit of account.
In the same vein, digital securities, have been described by the state as digital assets which include a contract, transaction, or a scenario whereby a person invests money in a project. The person also expects returns from the efforts of the organizers of the business or an intermediary and does not “include any other asset within the meaning of security” under Wyoming state law.
Thirdly, the Wyoming legislators have explicitly noted that digital consumer assets are digital assets used or purchased primarily for “consumptive, personal or household purposes” and includes the following:
- “An open blockchain token constituting intangible personal property as otherwise provided by law.”
- “Any other digital asset which does not fall within paragraphs (iii) and (iv) of this subsection.”
New Crypto Valley of the U.S.?
If all goes as planned, it is expected that more financial institutions in the region will begin helping clients to work with digital assets, as the bill has set a solid foundation for banks to launch custodial services in a manner that would be highly beneficial to all entities.
It’s worth noting that Wyoming has been one of the areas that have exhibited the friendliest approach to bitcoin and altcoins globally. Earlier in January 2019, BTCManager informed that Wyoming had passed two new crypto bills targeted at encouraging digital currency adoption.