Wyoming Bill To Pave Way For Crypto Custody

Wyoming is looking to be the first state in the U.S. to offer clear banking permissions specifically meant for cryptocurrencies and digital assets. It is worth noting that the state is trying to pass a bill that would recognize digital currencies as money. Now, it is hoping it could be much better than this.

Introducing SF0125

According to the official report, a bipartisan group composed of state legislators reportedly introduced SF0125 to the government. If passed, there would finally be a way to classify digital assets and/or cryptocurrencies as property within current laws.

SF0125 is believed to establish a so-called “opt-in framework” specifically aimed at banks. By doing so, this would provide the latter custodial services meant for digital asset property and deemed it directed custodians. These are basically the determined standards that would define such services.

According to the co-founder of the Wyoming Blockchain Coalition named Caitlin Long, the bill is considered a huge step for the state as a whole. Also, it could easily provide a boon for cryptocurrency businesses and users alike.

Better License Than New York Trust’s

Long suggested that there is a growing number of companies setting up as New York trust companies. But for the executive, the Wyoming bill is easily a much better license when compared to the New York trust license. This is because it is specifically aimed at banking institutions, as well as the fact that it is in a state. In addition, the state itself has recognized and even clarified the specific legal status of digital assets and cryptocurrencies.

For Long, these are two things are considered equally important in the industry right now. It holds true as well that there is no state that is providing the same clarity that Wyoming is pushing.

Gaining Momentum and Support

Perhaps one of the bill’s most notable aspects is its direct support acquired right after the introduction. As a matter of fact, the leadership courtesy of the state’s House and Senate is reportedly cosponsoring the bill. This leadership includes members from both the Democratic and Republican parties.

Of course, getting the bill introduced is just one of the first steps. Long understands that it still has to go through a lot of obstacles in order to be officially recognized. In fact, the executive expects challenges that could happen during the legislative process. But despite these, it cannot be denied that the bill is gaining momentum and a lot of support.