Wyoming Is Challenging The Fed, Can It Become America's "Crypto Valley"?

Authored by Tho Bishop via The Mises Institute,

The DC Swamp continues to fester, but there is still interesting work being done at the State level.  Particularly interesting is what we've seen so far this year in Wyoming. 

Earlier this month, the Wyoming legislature became the latest state to modify their state laws to challenge the Federal Reserve's monopoly on money.

As Mike Maharrey wrote for the Tenth Amendment Center

Titled the Wyoming Legal Tender Act, the new law defines gold and silver specie as “legal tender,” meaning it will be recognized as a medium of exchange for the payment of debts and taxes in the state. Practically speaking, gold and silver specie will be treated as money, putting it on par with Federal Reserve notes in Wyoming.

The law defines specie as coins having gold or silver content, or refined bullion, coined, stamped or imprinted with its weight and purity.

HB103 also prohibits the state or local governments from levying any property, sales of capital gains taxes on gold or silver specie. Wyoming does not have an income tax. However, it does have a sales tax and it assesses this tax against precious metals bullion

The Senate passed HB103 with some technical amendments by a 25-5 vote. The House previously passed HB103 by a 44-14 vote. Last Wednesday, the bill became law without Gov. Matt Mead’s signature. It will go into effect July 1, 2018.

At the same time, Wyoming became the first state in the nation to explicitly recognize cryptocurrency as a new asset class.

As Rachel Wolfson of Forbes reported:

The Utility Token bill was designed to exempt specific cryptocurrencies from state money transmission laws and is the first of its kind to legally define the way in which specific types of crypto tokens are treated by regulatory bodies. The bill excludes “developers or sellers” of tokens from securities laws under the caveat that they meet certain conditions. In order to meet these requirements, the token must not be offered as an investment and must be a vehicle for exchange as a utility token.

The state of Wyoming is the first elected body in the world to define a utility token as a new type of asset class different from a security or commodity,” Caitlin Long, co-founder of the Wyoming Blockchain Coalition, told me. “This has been a hot topic in Washington D.C. recently, as the SEC considers cryptocurrencies to be securities, FinCEN says they’re generally money, and the CFTC views them as commodities. Now, however, you have a state coming out and defining utility tokens as a new form of property, and property is generally the purview of state law.

Long and the other members of the Wyoming Blockchain Coalition view the passing of House Bill 70 to be especially groundbreaking as this could be the first step to getting the U.S. congress to clarify how cryptocurrencies should be regulated.

This could be very positive for the cryptocurrency community if Congress can break the tie and clarify everything. It’s very exciting that Wyoming is the first state to define what a utility token is, setting an example of how this could become a standard under federal law. I do believe the Wyoming approach will work under federal securities law and am optimistic the SEC will agree, Long said.

Already the Cowboy State is seeing a payoff for their proactive approach to cryptocurrency. According to Long on her personal blog, "Dozens of small software companies have already formed Wyoming entities and some of these have already leased office space – 20,000 square feet and counting."

This is one of many blockchain-related initiatives that Caitlin Long has been involved with, including some she mentioned during a Mises Weekends interview with Jeff Deist last year.

Comments

pc_babe E5 Mon, 04/02/2018 - 21:38 Permalink

Article 1 - The Legislative Branch
Section 10 - Powers Prohibited of States

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

...Better to allow US Gold & Silver coinage to do your heavy lifting, allowing these legal specie to be accepted for debts versus trying to mint your own coin, WY.

As well, IRS can't tax your cap gains on its own legal gold & silver spiece, but they will tax your Crypto gains

In reply to by E5

NoBillsOfCredit pc_babe Tue, 04/03/2018 - 08:10 Permalink

Article 2 Section 1 Clause 3 "...direct taxes must be apportioned among the States..." also. 

 

States cannot coin their own money but they can make private coin a tender. Also, you forget we are operating under the National Evonomic Emergency declared March 9, 1933 by Roosevelt. If the Constitution was being obeyed, they'd all be in prison for treason.

In reply to by pc_babe

Endgame Napoleon DosZap Tue, 04/03/2018 - 00:02 Permalink

The 1% could store their gold in this Texas gold depository, especially if the Yellowstone volcanic rumblings turn out to be for real. 

https://comptroller.texas.gov/economy/fiscal-notes/2017/september/bulli…

https://www.zerohedge.com/news/2017-06-28/scientists-fear-supervolcano-…

It is good that Wyoming is providing an alternative for cryptos and goldbugs, but since they have a tiny population of 586,107, how many cryptos and goldbugs could be there? 

https://en.m.wikipedia.org/wiki/Wyoming

 

In reply to by DosZap

SheHunter Kafir Goyim Tue, 04/03/2018 - 01:38 Permalink

Wyoming remains the renegade true blue state of the union.  We respect individuality.  We respect one another.  Cheney was a mis-placed maggot. And not one of Wyoming.  Drive the stretch of dirt road between Wamsutter and Jeffrey City.  That stretch of road is so isolated that if we see another truck on the road we stop and visit.  If someone is pulled over we slow down to make sure they aren't broke down.  That is who we are.  Wyoming dares to dare.

In reply to by Kafir Goyim

curly Belrev Mon, 04/02/2018 - 15:58 Permalink

May be all those investment bankers who've built "primary residences" in and around Jackson, to avoid some of the taxes in NY, NJ, CT and CA.

 

Definitely a different place once the FED cockroaches and their groupies started holding FED meetings in Jackson Hole.

 

In reply to by Belrev

lester1 Belrev Mon, 04/02/2018 - 16:15 Permalink

There's literally no difference between these cryptocurrencies and what Bernie Madoff was doing !!

 

Retards the SEC let Madoff run his Ponzi scheme for years before it finally collapsed and he was found out. That's exactly how the cryptocurrency space is going to play out.

In reply to by Belrev

Buckaroo Banzai Mon, 04/02/2018 - 15:49 Permalink

Nothing to see here, move along. Make sure you don't buy any BitCoin, LiteCoin, Cardano, or any other quality "utility token", we need to keep Jews fully in control of the (((global financial system))) because they know what's best, and are working for the benefit of all.

KenilworthCookie Mon, 04/02/2018 - 15:51 Permalink

Why the Hell would you want to pay your debts and taxes in real money such as Gold or Silver? No you would use Federal Reserve notes for that.Save the Gold and Silver as real weath.Discharge the debts with Fiat.

1.21 jigawatts Mon, 04/02/2018 - 15:56 Permalink

I can take over for Lester1 here cuz I don't think he'll be showing up here today: 

BUT ALL YOU CRYPTO TAX CHEATS NEED TO PAY YOUR TAXES TO THE IRS SO THEY CAN FUND OUR SOLDIERS KILLING AND GETTING KILLED IN WARS AGAINST ISRAEL'S NEIGHBORS! 

ALSO, PONZI.  

AND GODDAMIT I'M SO PISSED I MISSED THE BOAT. 

rejected Mon, 04/02/2018 - 16:00 Permalink

I realize were post Constitutional but here it is anyway. 

US Constitution Article 1 Sect 10:

No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts;

Even paying State taxes using FRNS is unconstitutional. But who really wants to pay in gold! 

Buckaroo Banzai rejected Mon, 04/02/2018 - 16:04 Permalink

Wisconsin didn't define "utility tokens" as legal tender, they just defined them as a form of personal property. There is no law against barter, which means if you want to use "utility tokens" to trade with fellow citizens, there is nothing the Constitution has to say about it.

Remember there is a difference between exchange, and debt. Debt is a form of legal bondage; exchange on the other hand, is conducted on a voluntary basis between free men.

In reply to by rejected