How Wyoming Aims to Be the Crypto Capital of the U.S.
The state of Wyoming can thank Caitlin Long for pushing and changing how cryptocurrencies are regulated in the crypto-friendly state.
Sept. 13 2021, Published 2:47 p.m. ET
Unassuming and perhaps rather surprising to some, the state of Wyoming is way ahead of the pack in terms of aligning and adopting blockchain technology and cryptocurrencies. Having recently announced the legalization of Curve DAO crypto, Wyoming has become one of the most crypto-friendly states, and here is why.
It all started in 2017 when University of Wyoming alumni Cailtin Long attempted to donate to her alma mater. The university didn't accept the form of payment she was trying to send—Bitcoin. After realizing that the issue wasn't specifically with the university in terms of accepting Bitcoin, but rather the way Wyoming regulated cryptocurrencies, Long set out on an unexpected journey that would lead to the state's progressive stance on blockchain and cryptocurrency.
A campaign that lead Wyoming to be a "crypto oasis"
After Long volunteered to fix the money transmitter law regarding cryptocurrency, "one thing led to another" and soon she started changing several laws in her home state. Her initiative or rather casual happenstance led the state Legislature to create a state blockchain task force. Wyoming Governor Matt Mead appointed Long to the task force.
Considering that there aren't even a million people and, allegedly, only two escalators in the entire state, Wyoming is modest with its technological advances. The state creating a task force became an incredible feat that managed to catapult and enact 24 crypto laws designed to lure in people.
In Wyoming, Bitcoin and other cryptocurrency transactions are exempt from transmitter regulations. Other laws in Wyoming made sure that cryptocurrency transactions would basically be free of state taxes, including sales tax and property tax, which makes the state a desirable place for crypto enthusiasts.
Wyoming seems to be the most permissive crypto place in the U.S. legalizing DAO's
In July, Wyoming continued to further shake the scene when it announced that DAOs (decentralized autonomous organizations) would be able to legally operate. American CryptoFed DAO is the first DAO to be recognized and legalized in the U.S. and runs on the blockchain, supported by a stablecoin. DAOs are groups or entities of people with similar goals and a common mission, without a central authority or leader.
A DAO operates as pieces of code that execute actions on the blockchain without any intermediaries. Meaning, it's community-driven with a pool of liquidity allocated in proportion to the work someone puts into the protocol. The impact of DAOs will become more prevalent as Marian Orr, the CEO of the American CryptoFed DAO, said, "What this means is that creating a true digital currency with mass acceptance is now possible."
The culmination of all these decisions and laws reaffirms that Wyoming is further legitimizing its stance as the crypto capital of the U.S. The state continues to adapt and accept crypto-friendly policies. In contrast to the overall demeanor of the SEC, will Wyoming continue its progress as the crack down to crypto continues? We'll have to wait and see.