Wyoming lawmakers recently decided against a proposal that would have allowed the state to invest public funds in Bitcoin, citing concerns over volatility and financial risk, Tekedia reports.
The bill failed to gain traction, never making it out of committee before being quietly set aside. While some supporters argued that Bitcoin could serve as a hedge against inflation and offer higher returns compared to traditional assets, legislators ultimately took a cautious approach, prioritizing financial stability over potential gains.
Wyoming’s decision to reject the Bitcoin reserves proposal aligns with similar outcomes in Montana and North Dakota, where lawmakers also declined to move forward with such investments. In Montana, the measure was voted down 41-59, with critics labeling Bitcoin investment as “speculation” and emphasizing their responsibility to protect taxpayer money. North Dakota’s proposal similarly failed, with concerns over Bitcoin’s price fluctuations discouraging support.
Despite these rejections, other states, including Utah and Arizona, are still considering their own Bitcoin investment proposals. This suggests that while Wyoming opted out of this particular initiative, interest in government-backed Bitcoin investments remains active in certain regions.
While Wyoming declined to invest state funds in Bitcoin, it remains one of the most crypto-friendly states in the US Since 2018, the state has passed a series of laws designed to attract blockchain businesses and foster innovation in the digital asset space.
Some of Wyoming’s key crypto regulations include:
- Exemption from Money Transmission Laws: Companies dealing in digital assets like Bitcoin and Ethereum are not required to obtain a money transmitter license, reducing regulatory burdens.
- No Property Tax on Crypto Holdings: Unlike many states, Wyoming does not impose property taxes on digital assets, making it a favorable location for long-term investors.
- Blockchain for Corporate Records: Businesses in Wyoming can legally use blockchain technology for maintaining corporate records, streamlining administrative processes.
- Financial Technology Sandbox: This initiative allows blockchain and financial technology startups to test new products with fewer regulatory restrictions, encouraging innovation.
Wyoming’s approach stands in contrast to more restrictive states like New York, which introduced the BitLicense in 2015—a stringent regulatory framework that many crypto firms find challenging to comply with. California is also tightening its grip on digital assets with its Digital Financial Assets Law, set to take effect in mid-2025, imposing new licensing and compliance requirements. Meanwhile, Hawaii has some of the strictest crypto rules in the country, requiring exchanges to hold cash reserves equivalent to their digital holdings, a regulation that has led companies like Coinbase to exit the state.
