The Wyoming Blockchain Coalition, a grassroots movement to provide a regulatory environment that is attractive to cryptocurrencies and blockchain technology companies, has gained significant support for legislation that would benefit both the Bitcoin community and the State of Wyoming.
Among the group’s advisors are Patrick Byrne, CEO of Overstock, former Wyoming Governor Jim Geringer, and two deans and a computer science department head from the University of Wyoming.
The legislation will be introduced in February, and focuses on the same policies that already make Wyoming an attractive location for businesses:
- Zero corporate income or franchise taxes.
- Some of the strictest privacy laws in the nation governing LLCs formed in the state.
- Companies don’t have to be physically located in Wyoming to take advantage of these benefits, just as most Delaware corporations aren’t located in Delaware.
- Cheyenne, the state capital, has high-bandwidth fiber-optic internet and cheap power, a combination that is already attracting major data collection centers looking to cut utility costs.
- Wyoming pioneered LLC-friendly regulation by passing the nation’s first LLC law in 1977.
H.B.0070, one of the bills up for proposal, would exempt any tokens issued by the blockchain from Wyoming’s money transmitter and securities laws.
The bill would also exempt bitcoin exchanges (or people exchanging tokens) from falling into the category of brokers under Wyoming law. H.B.0070 has 12 sponsors so far, including the Speaker of the Wyoming House of Representatives, Rep. Steve Harshman (R).
H.B.0019, referred to as “the Bitcoin bill,” is a separate bill that would exempt virtual currencies from Wyoming’s money transmitter laws. The bill would allow cryptocurrency businesses that pulled out of Wyoming, such as Coinbase, to continue to operate in the state without maintaining a business location there. The Bitcoin bill has also received several sponsors, including the President of the Wyoming State Senate, Sen. Eli Bebout (R).
One of Wyoming’s greatest unnatural resources is its business-friendly State Legislature, combined with low taxes. If this legislation is passed, the Cowboy State could become Bitcoin’s new frontier.