In the midst of a patchwork quilt of state and federal regulations for cryptocurrency and blockchain companies, Wyoming appears to have established itself as a more advanced jurisdiction for new technology companies.
According to Pierluigi Matera, a professor of comparative law at Link Campus University in Rome, these liberal blockchain laws could lead to the government losing Delaware’s dominance when it registers a company in the United States.
In an article published Thursday, Professor Matera argued that Wyoming’s blockchain-centric approach could pose a major challenge to Delaware’s dominance.
According to Delaware portal statistics, 67.8% of all Fortune 500 companies are registered in the state, with 1.5 million legal entities choosing to register in the state.
In the absence of federal incorporation laws in the United States, Delaware has established itself as a center for business registrations with liberal corporate governance laws.
In February 2018, the Wyoming state legislature passed legislation that exempted some tokens from securities regulation. Since then, state legislators have also passed several laws to increase the adoption of cryptocurrency and blockchain in the state.
These attempts to create a clear legal framework for decentralized technology covered areas such as regulatory means, government tax breaks and exemptions for the transfer of laws.
According to Professor Matera, Wyoming’s blockchain approach goes beyond company or tax law and extends to banking and securities regulation, which is important for start-ups in the industry.
However, Matera, who is also a professor of business and corporate law at LUISS – Guido Carli in Rome, added that Wyoming would need to specialize in other areas in order to establish and maintain any significant blockchain adoption hegemony in the United States, saying:
“Wyoming should achieve a level of expertise that other jurisdictions cannot easily replicate, such as specialized courts, virtual currency and blockchain case law. In this regard, I believe it is appropriate to set up a business and business case office.”
Matera also cited potential federal laws as another potential obstacle to Wyoming’s dominance of blockchain-related incorporation in the United States. Several cryptocurrency bills are currently being considered by Congress, which could lead to the adoption of national rules for the new technology.
Back in 2019, the Wyoming US Unified Legal Committee rejected the regulatory model for crypto and blockchain assets. The move forced ULC to reconsider its approach to cryptocurrencies in the Uniform Commercial Code.