Wyoming is trying to position itself as a leader in cryptocurrency and one of the friendliest states when it comes to legislation around crypto companies.
According to a report in Bloomberg back in March, Republican Governor Matt Mead signed into law legislation on limited liability corporations that is more friendly to blockchain companies, making so-called utility tokens an asset class and exempting cryptocurrency from state property taxes. That prompted crypto and blockchain companies to register in the state, reported Bloomberg, “This is one of the most exciting things that I have seen in a decade as far as the possibilities,” said David Pope, an accountant and executive director of the Wyoming Blockchain Coalition, in an interview with Bloomberg. The group had lobbied for the changes that are now on the books in the state of Wyoming. “The more traction and the more ground we can gain toward Delaware, the better for the state of Wyoming.” He was referring to Delaware’s friendly stance on LLCs. Since the legislation, Pope told Bloomberg more than a dozen companies have reached out to him about registering their businesses in Wyoming. James Row, a registered broker who worked with the Wyoming Blockchain Coalition, told Bloomberg he filed the paperwork for a new blockchain company with the state and is mulling moving some of his 11 other businesses registered in Delaware to Wyoming. “It’s cheaper and easier from a corporate filing perspective,” says Row, who is a managing partner at Entoro Capital. “Wyoming is proving that it’s being pro-business and anti-bureaucracy.”
Since the legislation was completed, Bloomberg reported that two or three crypto companies register in the state every day — which, in and of itself, will bring increased revenue a the state in which mining and energy are the main drivers of the economy. If companies set up offices in the state, it will mean more money in its coffers. As for a Securities and Exchange Commission crackdown on cryptocurrency Wyoming isn’t concerned. State Representative Tyler Lindholm, a Republican who sponsored key parts of the blockchain laws, told Bloomberg that he and other lawmakers have the SEC coming to the next meeting of a task force set up to look at blockchain laws. “My legislation does tend to not align with federal bureaucracies very well, and it wouldn’t be the first time I got a letter from an agency at the federal level,” Lindholm said, noting that other states, including New Hampshire and North Dakota, have reached out to learn about passing similar laws. “If it comes down to a federal fight, I think it’s great for Wyoming to have partners.”