The state of Wyoming is arguably the most advanced of all the US States when it comes to building a comprehensive legal framework for blockchain-based businesses. Having now enacted a total of 13 blockchain laws, the state is now known as the “Delaware of digital asset law”, a reference to Delaware’s lead in corporate law. The Bills bring clarification to a whole host of blockchain-based applications by:
- Recognising direct property rights for individual owners of digital assets of all types (virtual currencies, digital securities and utility tokens) and applies the super-negotiability rules of commercial law to virtual currencies—which foster their liquidity—by applying the very same rules that apply to money.
- Setting up a Fintech sandbox to provide regulatory relief to financial innovators from existing laws for up to 3 years. It’s broadly reciprocal with Fintech sandboxes both in the US and globally;
- Authorising a new type of state-chartered depository institution to provide basic banking services to blockchain and other businesses.
- Authorising the first true “qualified custodian” for digital assets which is a bank.
As far as state-level taxes are concerned, Wyoming also stands as a much friendlier jurisdiction than other states. As far as digital assets are concerned, Wyoming has exempted them from property taxes. Moreover, while sales taxes apply to tangible personal property, Wyoming has classified digital assets as intangible personal property.