The world's first cryptocurrency scored a big win just before the weekend with lawmakers in the U.S State of Wyoming passing a bill that allows the innovative currency to be classified as money.
The new status means that residents of the city are now free to transact Bitcoin without having to pay taxes on it as though they invested. Also, businesses in the region can accept it knowing that they have the support of the government to do so.
As Stmarket.co reported on January 22, the case to allow Bitcoin to exist as a legal tender was raised by Wyoming’s Sen. Tara Nethercott as well as five other legislators from different regions in the U.S State.
The now passed bill know as “Digital assets-existing law” specifies three different classification for the types of cryptocurrencies currently in circulation — currency, securities or assets.
Bitcoin was specifically classified by the bill as a type of currency that is backed by technology and finds usage in day-to-day transactions.
Tokens such as those issued by Initial Coin Offerings (ICOs) were classified in the bill as securities while the other type of cryptocurrencies that qualify as assets are those that offer users a specific utility on the platform that issues it.
The new legislative piece also allows local banks to offer crypto custody services to clients across the 50 U.S States.
To do this, however, banks have to comply with the SEC’s Custody of Funds or Securities by Investment Advisers directive, which practically means treating Bitcoin and other cryptocurrencies in the same light as other traditional securities.
Crypto enthusiasts will hope that the latest win scored by Bitcoin will be the first of many favorable regulatory efforts for the emerging industry this year.
One of the pending regulatory decision is the “Token Taxonomy Act” introduced in December by U.S Reps Warren Davidson and Darren Soto.
The bill aims to exempt cryptocurrencies from the SEC's ‘securities law’ and will be a game changer if it is passed into law.
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