Wyoming Passes Bill that Ensures Banking Relations for Blockchain Firms

iqglobal.intel.com

Wyoming has passed a bill that lets banks offer services to Blockchain companies in the state. The document indicates that the new bill will be creating a new “banking category” known as the Special Purpose Depository Bank. This category will be composed of financial institutions in the state of Wyoming set to offer banking services to Blockchain-related business establishments.

Voting 13-1, Wyoming’s legislative committee has unanimously passed the bill which aims to address banking issues faced by Blockchain companies in the state. The document says:

“The rapid innovation of blockchain technology, including the growing use of virtual currency and digital assets, has resulted in many blockchain innovators being unable to access secure and reliable banking services, hampering the development of blockchain services and products in the marketplace.”

Traditional banks in the state are known to have assumed a negative stance against Blockchain firms and refuse to provide them with safe and dependable services in the wake of Wyoming’s stringent banking regulations. The document further states:

“Authorizing special purpose depository banks to be chartered in Wyoming will provide a necessary and valuable service to blockchain innovators, emphasize Wyoming’s partnership with the technology and financial industry and safely grow this state’s developing financial sector.”

Banks in this category are to maintain equal reserves of the deposits kept, which is just bigger than the “fractional reserves” stored by traditional banks which are intended for money laundering and fraud prevention.

The document also claims:

“At all times, a special purpose depository bank shall maintain liquid assets valued at not less than one hundred percent (100%) of its depository liabilities.”

However, the bill also stipulates that deposits stored with the Special Purpose Depository Banks will not be insured by the U.S. Federal Deposit Insurance Corporation (FDIC).

Wyoming Blockchain Coalition co-founder Caitlin Long announces the development through a Twitter post. In the tweet, Long underscores that the bills are passed despite the “heavy opposition” from the banks. Long’s group is known for advocating the mainstream implementation of Blockchain tech in Wyoming. Her tweet reads:

BREAKING! #Wyoming legislative committee passed #blockchain #bank bill 13-1 over heavy opposition from the banking industry. Congratulations and thanks to all out supporters! pic.twitter.com/nQDjALykRk

— Caitlin Long (@CaitlinLong_) November 30, 2018

Wyoming, which is known for its pro-Blockchain stance, made history in March when it passed five Blockchain-friendly bills into law. Two of these bills are House Bill (HB) 19, which exempts virtual asset firms from money transfer laws and regulations, and HB 70, which excludes digital currencies from state taxes.