Wyoming has long been one of the most progressive states in the United States, and it’s doing so again in the realm of digital currencies. The state has now enacted almost a half-dozen legislation aimed at the industry, attracting some major names.
It’s no surprise that the state is a leader in the field of digital currency legislation, as it was one of the first to establish limited liability companies (LLCs) and the first to grant women the right to vote.
The state has now enacted 26 new laws, all of which are related to digital assets. The most significant one so far is focused on a new sort of charter that allows new digital currency institutions to be approved quickly. The Wyoming DAO Law also paved the way for the country’s first legally recognized decentralized autonomous organization, according to CoinGeek.
Caitlin Long has been at the forefront of Wyoming’s pro-digital-currency campaign. Long is a Wall Street veteran who worked at Credit Suisse and Morgan Stanley as a managing director. She is currently led by Avanti Financial Group, a Wyoming bank that bridges the gap between digital assets and traditional finance.
In a recent interview with CNBC, she noted,
“What Wyoming did was just create a welcoming legal environment, clarifying that this industry is lawful and does exist in a recognized manner. Most of the crypto industry in other states is just in a legal and regulatory grey area.”
While legal clarity is the main draw, Wyoming also has no personal income tax and a plethora of inexpensive energy sources.
Senator Cynthia Lummis of Wyoming is as enthusiastic about the digital currency dream as the rest of the state. In the recent Infrastructure Bill, she was one of the advocates for digital currencies. She told CNBC that the state’s pro-digital currency position brings in more income and creates more tech employment.
However, there are fears that Wyoming may be shouldering all of the responsibilities for the digital currency companies while receiving less in return. For one thing, because digital currency transactions aren’t taxed, the state’s direct revenue from such activity is small.
While the state claims to be reliant on enterprises creating jobs, the bulk of digital currency startups employ a remote-first hiring approach. Take Kraken, a big exchange that opened up shop in Wyoming to take advantage of the favorable rules. Its CEO admitted publicly to bank fraud on Twitter. It had 162 job postings for remote positions a month ago, but only three for Wyoming residents.