One business and law professor has argued that Wyoming’s liberal blockchain law could help the state compete with Delaware in the business incorporation arena.
Amid the patchwork of state and federal regulations for crypto and blockchain firms, Wyoming seems to have established itself as a more progressive jurisdiction for companies involved in the novel technology.For Pierluigi Matera, professor of comparative law at the Link Campus University of Rome, these liberal blockchain laws could see the state chip away at Delaware’s preeminence in business incorporation in the United States.In a paper published on Thursday, Professor Matera argued that Wyoming’s targeted blockchain-friendly approach could pose a significant challenge to Delaware’s dominance.According to statistics from the Delaware government portal, 67.8% of all Fortune 500 companies are incorporated in the state with 1.5 million legal entities electing to be registered in the state.In the absence of federal incorporation laws in the U.S., Delaware has established itself as a hub for business incorporation with liberal corporate governance laws.In February 2018, Wyoming’s state legislature passed a bill exempting certain crypto tokens from securities regulations. Since then, state legislators have also enacted more laws to promote cryptocurrency and blockchain adoption within the state.These attempts at creating a clear-cut legal framework for decentralized technology have cut across areas like regulatory sandboxes, state property tax holidays, and exemptions from money transmitter laws.According to Professor Matera, Wyoming’s blockchain approach goes beyond corporate or tax law and extends to banking and …
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