Wyoming lawmakers are gearing up their efforts to establish a crypto bank, the state’s biggest newspaper Casper Star-Tribune reports. According to Tyler Lindholm, one of the state legislators, this would help to eradicate discriminatory policies of certain banking institutions towards crypto-oriented businesses and propel the state’s economic growth.
Fighting against economic discrimination
The majority of traditional banks still retain a tough stance on cryptocurrencies despite the fact that behemoths in the likes of Goldman Sachs are gradually starting to explore the burgeoning asset class. Lindholm also acknowledges this issue, stating that a person’s bank account can be instantaneously frozen in case he or she gets involved in cryptocurrency trading. He claims that this is a salient example of financial discrimination. Case in point: a UK cycling merchant Scott Snaith whose personal and business accounts were swiftly shut down after he performed a hefty transaction on a cryptocurrency exchange.
A money warehouse
Wyoming, a state with a rather anemic growth in the high-tech sector, is betting big on the state-of-the-art technology by drafting legislation that allows creating a depository institution that is designed explicitly for transacting and storing digital assets. Of course, the crypto bank will not have vault doors or a teller– these are just regulated accounts that will give crypto-oriented companies an opportunity to operate in the state seamlessly. The crypto assets will be fully backed by cash or bank authorized investments.
Moreover, this “money warehouse” (as Lindholm puts it) extend beyond the functions of a traditional banking institution that only allows its customers to cash checks or apply for loans. According to the bill, the crypto bank would let businesses engage in fiat-dominated markets.
Ensuring Wyoming’s economic growth
Lindholm, who is also a co-chair of the Blockchain committee, claims that coming up with supportive regulations is rather a cost-effective way to propel the growth of crypto businesses in Wyoming. He also states the SEC has been reluctant to act decisively regarding cryptocurrency regulations, so Wyoming is taking the matter in its own hands to “let the companies know” they are embracing cryptocurrencies.