• Wyoming Enacts Tax-Favorable Law Aiming to Attracting Cryptocurrency Companies
  • June 12, 2018 | Authors: Yin T Ho; Segaal Schorr
  • Law Firms: Withers Bergman LLP - New York Office; Withers Bergman LLP - San Francisco Office
  • As of March 2018, Wyoming enacted blockchain company friendly legislation establishing blockchain “utility tokens” (which can be redeemed for goods and services) as an asset class that are exempt from state property taxes. Many cryptocurrency companies have since registered in Wyoming to take advantage of these tax benefits, but also to benefit from the perception that the legislation shows that the state will run a lower risk for violating SEC regulations of ICOs. Insiders hold that the Wyoming legislation takes advantage of areas within the scope of state securities and financial law, which may not fall under SEC regulation. Proponents of the legislation have expressed that New Hampshire and North Dakota may soon follow suit, thus Wyoming has partners should its friendly laws “lead to a Federal fight.”