Despite strong opposition from the financial industry, last Friday Wyoming voted to approve a bill that allows the integration of traditional banking with blockchain technology.
Passed with a 13-1 vote, the bill is known as 19SLO-0055 and will enable the creation of a new category of banking, dubbed ‘Special Purpose Depositary Bank’. Another bill, the 19SLO-0048, also seems to be attractive for the crypto environment as it will create a FinTech Sandbox so that regulation can keep up with the pace of the industry.
Institutions falling under the definition of this category will have the same legal requirements as any other bank, however, they will be legally enabled to deal blockchain-based assets. Thus, these Special Purpose Depositary Banks would become regulated financial channels allowing exchanges between fiat and crypto, a step which has proven difficult for many crypto-based projects.
The western state is one of the best crypto legislative environments together with Colorado. Also during this year, Wyoming passed five other bills giving support to citizens and companies involved in blockchain transactions.
The latest move of Wyoming raises once more the question of whether the SEC and the state authorities are on the same page, as this Twitter user pointed out:
...with #Wyoming coming out in favor of crypto, states are flexing muscles. This is not to say this will become a trend only that #SEC will not likely get a lot of support from Congress / Courts beyond what we have seen so far. #Crypto is here to stay, question is in what form?— Adam Bornstein (@adamsbornstein) December 1, 2018