, 10 tweets, 6 min read Read on Twitter
#Wyoming Digital Assets act includes definitions of digital asset, digital consumer asset, digital security, #virtualcurrency, classification of assets under UCC, covers perfection against those assets, custody by banks, & jurisdiction by courts wyoleg.gov/Legislation/20… 1/x
WHY THIS IS IMPORTANT: there is no uniform treatment of the various types of #cryptoassets. The IRS views them as property. Some cases & regulators- Shavers, Faiella FINCEN- view them as money equivalents. Some states do not view them as money equivalents- WY, SD, PA. 2/x
Some #cryptoassets are viewed by the CFTC as commodities, or by the SEC as securities. Courts have been inconsistent in their views of these assets. Uniform Acts seeking to bring clarity have not been passed in any jurisdiction. This is confusing for everyone including lawyers3/x
This confusion, these conflicts create chaos and unpredictability, which is the enemy of orderly business relationships. States are currently experimenting with a variety of approaches to #crypto regulation. Critically, States define property rights under US law. 4/x
this means your right to your property including your digital assets, are a function of state law. And there are meaningful variations among states. Before our eyes, we are watching states experiment with how the law should treat #crypto. It's an exciting time.
Like #california & #colorado with Cannabis, Wyoming is leading the experiment with new approaches to #VirtualCurrency regulation. Whether you agree with the laws or not, it is exciting to watch these experiments take place- &although they are local to Wyoming for now,
they may form the blueprint for other states to follow/ for future federal adoption. Or they may flop. Nobody knows. What's important is, this process is a necessary step in the maturation of #cryptoassets in our country and our economy. And Wyoming is doing yeomans work.
This bill is particularly important as it will improve how various types of #cryptoassets are treated in commercial relationships & in disputes that land in court. Clarity as to custody and ownership allows for cleaner, simpler, cheaper lending against #cryptoassets,
clarifies that Banks may hold these assets for 3rd parties which makes it safer /easier to hold these assets, &helps judges skip past technical issues when deciding disputes over ownership of these assets. Does this fix every problem? No. It is an approach that might work? Yes.
Zooming out to the BIG PICTURE, we don't know if any (or all) of Wyoming's laws will become the law of the land. But we now see legislatures listening to their constituents & experimenting with new approaches to substantive issues. This is a key stage in the maturation of #crypto
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