Wyoming Passes Bill to Secure Banking Relations for Blockchain Companies


        Wyoming Passes Bill to Secure Banking Relations for Blockchain Companies
Wyoming Passes Bill to Secure Banking Relations for Blockchain Companies

The state of Wyoming has passed a blockchain bill that allows banks to provide banking services to blockchain companies in the state. According to the legislative document, the new bill would create a new banking category called the Special Purpose Depository Bank, a group of financial institutions in the state that provide banking services to blockchain-based businesses.

The bill was passed unanimously by the state's legislative committee 13-1, and it seeks to remedy the banking problems faced by blockchain businesses in the state.

"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," the document states.

Traditional banks have not been friendly to blockchain companies in the "Equality State," depriving them of secure and reliable banking services to the sector due to the strict banking regulations governing the state.

"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," the document reads.

The banks under this category are expected to maintain equal reserves with the value of the deposits stored, which is above the fractional reserves kept by traditional banks, for money laundering and fraud prevention.

"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," the document states.

This stipulation comes at a price, though. Namely, deposits kept with the Special Purpose Depository Banks won't be insured by the U.S. Federal Deposit Insurance Corporation (FDIC).

The news was promptly shared on Twitter by Caitlin Long, co-founder of the Wyoming Blockchain Coalition, a group known for championing the adoption of blockchain technology in the state. Long noted in the tweet that the bills were passed despite "heavy opposition" from the banks.

Known as one of the pro-blockchain states in the U.S., Wyoming had made history earlier in March 2018 when it passed five blockchain-friendly bills into law. Amongst which is House Bill (HB) 19 which exempts digital asset companies from dreaded money transmitter laws and regulations, and HB 70 which excludes cryptocurrencies from taxes in the state.


Cartoon: Snakes and Ladders

Startup life is full of snakes and ladders, but in the blockchain market there are currently more snakes.

Ian Foley

Bitcoin Dev Demos the First Lightning-Enabled Bitcoin ATM

Bitcoin developer Felix Weis presented a successful demonstration of his Lightning-enabled plugin for a Bitcoin ATM.

Michael Taiberg

U.K. Brexit Deal Beamed Into Space Through Blockstream’s Satellite Messaging App

Blockstream's satellite messaging app has launched on Bitcoin’s mainnet and one enterprising bitcoiner has used the platform to beam the U.K.’s proposed Brexit deal into space.

Jimmy Aki

Stanford Student Calls Out Crypto Professor for Inaccurate Bitcoin Lecture

Professor Susan Athey's presentation on “Blockchain and the Future of Finance" at the University of Stanford Graduate School provoked one student to protest its “multiple misstatements” about Bitcoin and its fundamentals.

Michael Taiberg