This past week, the state of Wyoming introduced legislation designed to clarify the taxable status of digital assets. The bill (SF 0125), is being sponsored by state Senators Nethercott, Driskill, Perkins and Rothfuss, along with Representatives Harshman, Lindholm, Loucks, Olsen and Wilson.
Wyoming has positioned itself as a blockchain/crypto friendly jurisdiction. This most recent legislation is an Act that clarifies digital assets as:
“… property within the Uniform Commercial Code; authorizing security interests in digital assets; establishing an opt-in framework for banks to provide custodial services for digital asset property as directed custodians; specifying standards and procedures for custodial services under this act; clarifying the jurisdiction of Wyoming courts relating to digital assets; specifying applicability; authorizing the promulgation of rules; and providing for an effective date.”
The bill also says that virtual currency should be treated as money.
Wyoming has passed previous legislation that has encourages crypto innovation.
Wyoming is known for its low tax – pro-business policies. Regarding blockchain, the state has benefited from the advocacy of Caitlin Long, a former Morgan Stanley executive who has championed the technology as well as the Wyoming Blockchain Coalition.