This is a great news for crypto community as well as state of Wyoming and I wish other states as well as Federal government will follow their example.
I was waiting for this since the bill passed House of Representatives recently.
Unfortunately I feel that US is behind some of the countries to adopt blockchain technology from legal point of view.
For example, if somebody buys Ethereum (let’s say on Coinbase) and then transfers it to their wallet, they would have to pay income taxes on price difference. This clearly shows that whoever came up with this regulation, doesn’t yet understand this technology.
Crypto shouldn’t be taxed in a first place. (But that is just my opinion)
But even if they decided that when you buy crypto currency and then sell it later at a higher price it should be considered as income, in example above person didn’t even sell it. They still own it. So in this case it is “unrealized income” (again this is just my opinion and I am not legal or financial expert)
Also, as with any other regulations, it would be harder for US to adopt it as quickly as some other countries since every state will have to come up with / adopt their own regulations, and then there is Federal Government.
The Legislature in US state of Tennessee is reviewing two blockchain bills to and two other cryptocurrency bills. The blockchain bills (HB1507 and SB1662) seek to legalize blockchain for use in electronic transactions while the cryptocurrency bills (HB2093 and HB2508) will prevent investment in cryptocurrencies using retirement funds. This is according to Legiscan, a site that tracks legislative activities.
In summary, House Bill HB1507 seeks to “[recognize] the legal authority to use Blockchain technology and smart contracts in conducting electronic transactions; protects ownership rights of certain information secured by Blockchain technology.
In my eyes this bodes well for crypto in general since it sets a precedence even if it’s at the state level. Other states will be watching to see how this can benefit them at an economic level since it eliminates security regulations (as long as it passes the howey test), especially for ICOs.
Like anything, federal law supersedes state law, but I believe there’s a real case for the feds taking a look at what states are doing and crafting their regulation based on those cases.
In my opinion this really just affects operating centralized entities that want to ICO (maybe a centralized exchange with a utility token perhaps) and the way crypto should be reported and treated tax wise by individuals and business. For a decentralized open source project I think the waters are still very murky in terms of actual guidance.
Great news! It looks like the blockchain bills that were up for review in Tennessee passed!
“According to the new law, a blockchain-based signature is legally considered an electronic signature. Additionally, a blockchain-based record or contract is legally considered an electronic record.”
Importantly, the Tennessee law explicitly acknowledges the legitimacy of smart contracts. SB1662 explains, “No contract relating to a transaction shall be denied legal effect, validity, or enforceability solely because that contract contains a smart contract term.”
The bill was first introduced by Senator Robert Hertzberg in January, but public filings show that the measure has picked up steam in recent days. The State Senate’s Banking and Financial Institutions Committee referred the measure to the Judiciary Committee on April 18 after advancing it with a “do pass” recommendation.
If approved by that committee, the full Senate will vote on the measure, which would legally recognize information about a company’s stocks, including ownership, stored on a blockchain.
Should California approve the measure - an outcome that is far from guaranteed - the state would join Delaware and Wyoming in allowing companies to use the tech for administrative purposes.
Ohio has introduced a blockchain bill into it’s Senate.
“Senate Bill 300, introduced by Senator Matt Dolan, amends sections of the Uniform Electronic Transactions Act to include blockchain records and smart contracts as electronic records. Further, the bill allows for smart contracts to be legally enforceable as any other contract may be.”
Heard at a tax cryptocurrency event yesterday that Arizona is considering the acceptance of bitcoin for tax payments.
According to the bill, the Arizona Department of Revenue, upon receiving payments in crypto for “tax and any interest and penalties”, would be obligated to convert the cryptocurrency payments to U.S. dollars within 24 hours.
“Brian Forde, a former Obama administration tech adviser and also Candidate for California’s 45th District, in conversation with Bloomberg, has stated on his visions and proposals on cryptocurrency and further policy.”
“Pointing to the successful raising of about 130000 dollars at crypto.forde.com, Mr Forde argues that this is because people want to see legislators who are scientist and technologist in the congress and not emotional and irrational thinking as which is currently existing there.”
There is an ongoing race toward blockchain adoption. Many states now realize that friendly blockchain regulations could mean big bucks in taxes for them so those to make the first move will be able to benefit the most. This is great news for the crypto space because as more and more states start to embrace the tech it will place more pressure at the federal level to come up with comprehensive regulation that protects consumers but that also provides companies with the right tools to develop more on this tech.
Wyoming continues to lead the way in the blockchain legislation space. I’ll be attending a social event next week with the Wyoming legislature reps and the Wyoming Blockchain Task Force to find out more information on these proposed draft bills. Here’s all the info in case anybody is interested.