Cowboys on the Block: Inside Wyoming's Race for Crypto Prominence

In the first month of 2019, the state of Wyoming has performed yet another series of power moves showcasing its continued commitment to becoming America's new crypto hub, even despite recent changes in political leadership.

The incoming governor, Mark Gordon, made room for some blockchain talk in his inauguration speech, celebrating the state's innovative approach to regulation and touting a handful of homegrown startups.

These developments look more radical than many of the other states' recent blockchain-savvy moves, as they often explicitly challenge a variety of disparate federal approaches to crypto regulation.

Celebrating the news of another revolutionary piece of crypto legislation from Wyoming, one could wonder: Is this for real? Are they serious about this? What is it they are really shooting for? Putting Wyoming's newfound crypto drive in a broader context could shed some light on how and why the state of ranchers and miners decided to boldly reach out to the crypto industry.

How exactly does the influx of digital-money businesses promise to benefit Wyoming? Perhaps the simplest hunch is that the state is looking to capitalize on registration and incorporation fees.

State Rep. Tyler Lindholm, who has been behind most of Wyoming's key blockchain legislation, openly admitted to looking at the Northeastern state as a benchmark, and noted that his state was making about $30 million in fees, against Delaware's $1.2 billion.

By authorizing banks to administer digital assets under the new regulatory framework, Wyoming sets out to reach an ambitious goal of enabling them to comply with the Securities and Exchange Commission's regulations for "Qualified custodians." This is nothing less than a bid to establish a regulatory environment that would allow for the entirely new class of services to emerge within the state: digital asset custody.

The official commitment to expanding the state's technology sector is at least seven years old, while the Economically Needed Diversity Options for Wyoming program was established in 2017.

One more reason to double down on blockchain liberalization has been the flight of money transmitters from the state over the last few years - and the need to get them back.

Not only are some state politicians members of the coalition, they are also personally invested in local blockchain enterprises.