Wyoming, the first U.S state to classify cryptocurrencies as money is not yet done when it comes to the area of blockchain and virtual currencies. The western U.S. state has passed several bills in 2019, and two more have been added. Like the others, these new ones are also related to the blockchain. They are the special-purpose depository institution bill (HB074) and the corporate stock token bill (HB0185).
Wyoming Passes Two New Bills
Wyoming, a U.S. State has passed two bills, HB074, and HB0185 which are targeted at blockchain technology. Specifically, they both handle how operations in the crypto industry are carried out by investors and blockchain entrepreneurs. In the same vein, both documents are to be signed into law by Mark Gordon, the state’s Governor.
Caitlin Long, the Co-founder of Wyoming’s Blockchain Coalition, made comments about the new bill. According to Long, the bills are progressive, and there is a need to focus on the cryptocurrency industry completely.
Special Purpose Depository Institution is Important
She also added that the special-purpose depository institution (SPDI) is important. It will ensure that companies in the industry can easily access basic US dollar-only bank accounts which only a few startups can access. Companies will not also have to deal with their accounts being closed which has led many to shut down due to their inability to access financial services.
In this case, if more than a few banks serve the blockchain sector in the area of checking, payroll, or cash management accounts, then it can lead to the success of the industry. Therefore, through the bill, special purpose banks will be created to cater for companies in this industry. Long, however, noted that “It will be Spring 2020 before the first SPDI can open its doors so that it won’t solve short-term problems, but I think it will serve a very important need for the industry.”
Long also said:
The SPDI bill creates a state-chartered, non-lending, 100% reserve depository institution for businesses only. Very important – SPDIs aren’t FDIC insured. As Senator Driskill said during a lively Senate debate, “Wyoming is creating an unbullyable bank” because the FDIC can’t bully SPDIs.
Federal Deposit Insurance Corporation Orders Banks to Shut Accounts
According to the Co-founder, the Federal Deposit Insurance Corporation (FDIC) bullying which Senator Driskill referred to, is known in the past to shut down bank accounts of owners whose activities were not sanctioned. An instance of this was the Operation Choke Point where banks were ordered to close accounts of certain businesses which had been classified by the FDIC as “hi risk”.
The second bill HB0185, on the other hand, looks at how corporations can issue certificate tokens which are stored on the blockchain or any other auditable datable. The bill will be effective on July 1, 2019