Wyoming has been on a mission to become the most crypto-friendly US state since 2016, and it’s paying off. With over 35 laws regulating different aspects of the crypto industry, Wyoming has become a hub for crypto businesses, bringing well-paying tech jobs and a chance to mitigate the state’s brain drain. According to Steve Lupien, director of the Center for Blockchain and Digital Innovation at the University of Wyoming, “We’re seeing a lot of companies that are moving to Wyoming, last time I checked there were over 3,000 companies that domiciled in Wyoming, and there are probably more now.”
Wyoming’s crypto-friendly laws have been a major draw for businesses, providing greater regulatory certainty than other US states. In 2018, Wyoming passed a law exempting utility tokens from securities regulation, and later passed laws exempting cryptocurrency-related activities from the state money transmitter law, allowing companies to maintain their corporate records on blockchains, and exempting virtual currencies from the state property tax. The state has also recognized a new kind of bank, a special-purpose depository institution (SPDI), that is a regulated custodian for crypto assets.
The state has also passed laws protecting crypto users during bankruptcy proceedings, and earlier this year, the state passed the Wyoming Stable Token Act, authorizing state authorities to issue a stablecoin backed by dollars or U.S. Treasury bonds. In February, Wyoming’s House of Representatives passed a bill that prohibits the forced disclosure of private crypto keys by the US state’s courts.
Though Wyoming can’t boast an especially lively business or cultural scene, compared to other more populous crypto destinations, its crypto-friendly laws have made it the top-ranked US crypto hub.