The Wyoming State legislature has received a new bill that seeks to place Bitcoin in the same bracket as fiat money while providing a different classification for other types of cryptocurrencies.
The bill titled - Digital assets-existing law argues that cryptocurrencies can exist as either currency, securities or assets depending on their potential usage.
The bill defined Bitcoin as a type of currency, which matches the value of fiat money. Utility tokens such as those issued by ICOs for use on their platform is classified as assets while tokens issued by ICOs for the sole purpose of raising fund for their business is defined as securities by the document.
On the part of Bitcoin, passing into law of the new bill will make transactions in the cryptocurrency interest-free just as it is with fiat under Article 9 of the Uniform Commercial Code (UCC) for sovereign money transaction.
Wyoming Banks Will Provide Crypto Custody Under New Bill
Another primary objective of the digital assets-existing law is to serve as a framework for banks to provide crypto custodial services across the 50 U.S States.
Banks that choose to do this will comply with the SEC’s Custody of Funds or Securities by Investment Advisers directive and treat Bitcoin and other cryptocurrencies in the same light as other traditional securities.
Wyoming’s Sen. Tara Nethercott sponsored the new bill and is backed by five other legislators for different regions in the U.S State.
Meanwhile, it will continue the spate of recent efforts made by U.S Reps and lawmakers in different states, to bring some regulatory certainty to the crypto and blockchain industry.
In December 2018 alone, the “Colorado Digital Token Act” was introduced in Colorado to exempt ICO tokens from classification as securities. On a federal level, U.S Reps Warren Davidson and Darren Soto also introduced the “Token Taxonomy Act" for a similar purpose.