5 Notable U.S. States That Are Open to Crypto Regulations
As we know, blockchain and cryptocurrencies are the two most disruptive innovations that have taken the world by storm. In this article, we will talk about the five notable U.S. states welcoming crypto regulations.
Five Most Crypto-Friendly American States
Some of the American states that have fair regulations in place for cryptocurrencies are:
1. Colorado
As far as cryptocurrencies are concerned, Bitcoin seems to be on top of Colorado's priority list. Colorado has started paving the way for the crypto industry. In May 2018, Senate Bill 086 was signed. This required the Department of State, the Governor's Office of Information Technology (OIT), and the Department of Regulatory Agencies to consider using blockchain to protect confidential state records from theft and manipulation.
In March 2019, The Colorado Digital Token Act was signed by the Colorado Governor. It is a bill that aims to exempt cryptocurrencies from certain securities regulations, like the legislation in Wyoming. Effective from 2 August, certain digital assets that were actually designed for 'consumptive purpose' will now qualify for securities exemptions. This bill will help Colorado's state agencies regulate the Initial Coin Offerings (ICO) market, as the Colorado Division of Securities has been banning bad actors. Colorado has also blockchain to other fields. Before the Digital Token Act, in 2018, the mobile voting solution was deployed during the primary and midterm elections of West Virginia.
2. Ohio
Ohio still has a long way to go before it becomes a federal crypto hub in the U.S., but one can sense its ambitions as they are evident. Following the legal recognition of blockchain data in August 2018, lawmakers of the Buckeye State proposed using blockchain technology for marriage licenses and birth certificates and to work with universities so that they can offer blockchain-related courses to students.
Ohio has advanced greatly in one filed which is taxes paid in crypto. From November 2018, local companies have been paying everything right from cigarette sales taxes to employee withholding taxes using Bitcoin (BTC) after registering on the OhioCrypto.com website.
3. Texas
This was the first state that published a memorandum to declare that no money transfer license would be required for selling Bitcoin or other digital currencies. But Texas cannot be given the credit of being the most crypto-friendly place as Texas was on the verge of passing a bill in early 2019 that would have resulted in a ban over the usage of cryptocurrencies between unidentified parties.
There are many crypto mining enterprises in the business-friendly state of Texas, like TMGCore. The cooling technology of TMGCore allows it to run mining rigs efficiently even during extreme summers. In other states such as New York and Washington, where mining is known to be cost-efficient, they have intentionally increased electricity costs for crypto businesses. Overall, this makes Texas a safer bet.
4. California
In 2014, California was one of the first states to bring about a form of crypto regulation as the Governor of California signed a bill that ensured that "various forms of alternative currency such as digital currency" are legal in transmitting payments and purchasing goods.
Some of the biggest U.S. crypto companies such as Coinbase, Kraken, and Ripple are headquartered in California. The lack of certain regulations in California can be looked at as a blessing in disguise as local businesses are not hurdled with overly restrictive measures. California will soon be catching up with Wyoming and the other states. Earlier in August, California Government Operations Agency Secretary announced the chair and members of the blockchain working group that was created in 2018. According to the document, the task force must submit a report on the potential risks, benefits, and uses of blockchain to the state government by 1 July 2020.
5. Wyoming
Wyoming has always proved to be the undisputed leader in terms of crypto-friendly areas of America. The state of Wyoming put itself on the crypto map in 2018 a bill was passed by the Wyoming House of Representatives that defined utility tokens and exempted those of them that are not marketed as an investment opportunity from securities regulations.
Wyoming, by authorizing banks to administer digital assets, helps them to comply with the Securities and Exchange Commission's regulations for 'qualified custodians.' This will prompt even those who are not tech-savvy to enter the crypto market.
Conclusion
I hope you have now gained a fair understanding of some of the American states with crypto-friendly regulations. To enroll in blockchain certifications and become a blockchain expert, check out Blockchain Council.