What The New Wyoming Bill Means for The Future of Cryptocurrency
The Cryptocurrency Regulatory Landscape
With great power, comes greater regulation. Cryptocurrency is finally receiving the attention of the public, as well as regulatory bodies.
Most recently, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two of the United States’s most prominent federal agencies, have declared two different stances on cryptocurrency law.
The SEC claims that any cryptocurrency or token sold through an Initial Coin Offerings (ICOs) are “securities”. Any security sold without proper registration are considered illegal. Meanwhile, the CFTC has defined cryptocurrencies as commodities.
“Virtual currencies are ‘goods’ exchanged in a market for a uniform quality and value. […] They fall well within the common definition of ‘commodity’,” wrote U.S. District Judge Jack Weinstein.
While the SEC and CFTC place their own laws, Wyoming legislature introduced five bills that seek to define cryptocurrencies as a new asset class separate from securities and commodities.
Wyoming House Bill 70
The state of Wyoming passed Wyoming House Bill 70, also known as the “Utility Token Bill,” on March 7, and was quickly signed into law by Governor Matt Mead the following weekend.
The Utility Token Bill is the first bill that sets specific exemptions and regulations on crypto tokens. Under the new bill, businesses and developers that offer tokens are exempt from securities regulation provided they meet a few requirements. Most importantly, the token must not be considered an investment but used only as a utility token, a medium of exchange.
In addition to the Utility Token Bill, other bills focused on reintroducing money transmitters back to the state and exempting cryptocurrencies from property taxes.
A New Future for Cryptocurrency
Cryptocurrency regulation cannot be ignored. In fact, it was an inevitability from the start. As lawmakers introduce new legislation around cryptocurrency, national regulation moves toward more specific laws.
In the current situation, cryptocurrency cannot survive with conflicting definitions from the SEC and the CFTC. For cryptocurrency, utility tokens, and altcoins to flourish, they need to be allowed to operate with some sense of autonomy. Wyoming’s latest bills are the first to remove some regulation while providing more safety.
Legal Tender, Gold, and the New Commodity
In fact, regulation can be useful. One of the primary concerns for the rise of cryptocurrency and utility tokens was a lack of financial regulation. Without the proper measures and requirements in place, some businesses were allowed free rein to promise unprecedented returns while contributing to noble causes. The BitConnect Ponzi scheme is a great example of how lack of regulation can lead to investors losing their money.
Compared to legal tender and gold, cryptocurrency offers a lot more flexibility and digital application. Tokens such as Quint offer a completely new alternative that complies with tax and asset regulation while providing far more benefits.
Currently, gold and legal tender have only one true advantage: regulation. Since gold and legal tender are regulated, they are seen as more acceptable for government and business use.
As Quint and other crypto tokens receive more regulation, the more that businesses and politicians will see their true advantage as a medium of exchange, and the more specific the laws will become. While some may benefit others more than others, the most important part is that tokens will create a new opportunity: an entirely new digital economy.
Create a Quint account here, and start using the future of safe, sound, and secure money,
The author would like readers to note that he is a co-founder and board member at the Quintric. None of the content presented should be construed as investment advice or as legal advice.
As long as we have government, we are going to have regulation. The establishment cannot help itself. That is simply how things are.
The way to success is to maneuver around the regulations in a manner that helps the industry grow and uplift humanity. The regulators are going to do the dirty work of the banksters. We know that. Hence, cryptocurrency needs to operate within the system while breaking it down. There will come a day when the establishment is hit with a giant "SURPRISE". We are a long way away from that. Blockchain and crypto are growing, yet are still very small.
Hopefully the introduction of Bench will move this industry into the forefront.
This is great news :)
Great news to hear this i hope it will impact life more and more and i believe that cryptocurrency will take over
It's high time cryptocurrency becomes more acceptable in the world.
I heard Facebook are accepting bitcoin soon.
That would be a great development.
Noted!!
I strongly believe cryptocurrency is the future and I'm glad it is being recognized by the general public.
I'm creating a Quint account ASAP
Here's what I was thinking, as STATES do not have the ability to create legal tender;
The way Paper Bills are created through Treasury notes, which represent debt. The real money is what the Bills represent, not the Bills themselves. Just because the Bills can be used to pay debt and are regarded as legal forms of payment, does not make them true money. Real money is gold and silver minted coin.
Cryptocurrencies are in the grey space, but being that they are electronic the closest thing they are like is currently "Bank Money" and is created as electronic money by broad money (M1/M2). This broad money is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio.
But being that Bank Money (broad money) is not created by a central bank, but people, it's not the same type of electronic money.
The main idea is, once the crypto is regulated we need to try to make it NOT be debt-based and tied to the Dollar, but real Gold and Silver.