The state of Wyoming has recently passed a bill that makes it the first within the United States to classify cryptocurrencies as legal property, in a move that is believed to help legitimize the crypto space and propel it use cases.
According to reports, Senate File 125, sponsored by Senator Tara Nethercott and others, established property rights for those who own cryptocurrencies “and other virtual assets,” under its laws, which clarifies cryptos’ legal status.
The bill reportedly opens up the possibility for banks to hold cryptoasset in trusts, as it subjects cryptocurrencies to some of the same rules applied to money. Per Gillette News Record, the bill is one of eight that were created to attract fintech firms to the state.
The legislation, per then news outlet, could now provide other states in the country a roadmap to provide legal clarity on the status of cryptocurrencies. Caitlin Long, co-chairwoman of the Wyoming Blockchain Coalition, revealed she now hops firms like CitiGroup and Fidelity Investments expand their crypto-related offerings.
These, Long noted, could include 401(k) services, something the organizations have reportedly expressed interest in. She was quoted as saying:
We've had eight companies reach out to us already. Most of those are in the category of successful blockchain companies.
The Wyoming Blockchain Coalition of which Long is a part of has been working to “educate Wyoming citizens about the power of blockchain technology to cut costs, streamline administrative processes and spur entirely new businesses.” It boasts an influential list of advisers, which include Overstock’s CEO Patrick Byrne, a longstanding BTC supporter.
Banks and other financial institutions will now reportedly be able to hold cryptocurrencies in trusts “with ease.” While this doesn’t mean users can deposit bitcoin or other cryptos directly into their bank accounts, these could be kept “in their personal trust as property.”
Senator Netherscott stated:
It adds value and legitimacy to the currency by giving financial institutions and businesses the ability to use it more flexibly in ways they are already familiar with.
The bill that has been passed was introduced in mid-January, along with another bill that laid the groundwork for stock tokenization.