Wyoming is setting itself up to be the blockchain capital of the United States thanks to a slew of bills aimed to make the state friendly to cryptocurrency corporations and block-chain related businesses. Senate Bill 111 was introduced by the state on February 16 with the goal of excluding digital currencies from property taxation, while House Bill 70 or HB-70 similarly has the goal to definitively make clear what a “utility token” is.
Senate Bill 111 will see cryptocurrencies exempt from Wyoming’s property taxes. The bill, proposed by six senators and representatives, will remove tax penalties for cryptocurrency-holding. Once approved, the bill ushers in fresh capital within the state.
House Bill 70 of HB-70, which originally passed the state’s House of Representatives on February 20, was cleared by Wyoming state legislature and has the goal to exempt different kinds of cryptocurrency assets from securities laws. The bill is currently lined up to be signed by Governor Matt Mead.
State income tax is non-existent in Wyoming, however, virtual currencies are classified by the IRS as property. Once Senate Bill 111 is approved, cryptocurrencies – as well as other intangible items – will be “exempt from property taxation”. HB 70 will also offer solid legal guidelines on how to account for specific forms of cryptographic tokens. Another bill, HB 19, is a bitcoin-friendly legislation that sees to exempt digital currencies from Wyoming’s money transmission laws.
Caitlin Long, a native of Wyoming and co-founder of the Wyoming Blockchain Coalition, is an advocate of the blockchain-friendly bills. She explains that the bills are all “designed to attract software companies to move to Wyoming, as well as to attract businesses to register in Wyoming even if they don’t move there.”She added that the state’s absence of franchise of taxes and income taxes adds to the slew of reasons crypto-related businesses as well as cryptocurrency owners might want to move to Wyoming.