The state of Wyoming took the initiative for entering the digital asset race after the state passes a law that enables local domestic insurance companies to take part in the cryptocurrency trend.
Cryptocurrencies such as Bitcoin (BTC), Ripple (XRP) and Ethereum (ETH) are currently one of the biggest trendsetters in the last couple of years on this investment landscape. Without a doubt, governments and various agencies will notice the value they offer on the table.
With that said, domestic insurance companies in Wyoming might be one of the first in the insurance scenes to enter digital asset trading. The state aims for its full implementation this coming July 1st.
The Wyoming State Legislature passed the amendment made that allows insurance companies to deal with “digital assets” that are currently widespread in our current society. Yes, we are talking about Bitcoins and such.
HB0021 – Insurance Investments-Digital Assets
“This new bill allows transactions using any stocks or digital assets as defined by W.S. 34-29-101(a)(iii). which can appreciate in value shall be considered to be income paying for purposes of this subsection.”
HB0021 also states that insurers now may place investments in “digital assets, as defined by W.S. 34‑29‑101(a)(i) and excluding digital consumer assets as defined by W.S. 34-29-101(a)(ii).”
This bill opened up many doors, especially for the future of digital currencies. The state of Wyoming legislature defines digital assets as an economic representation or access rights available and stored in a computer-readable format. They also added that these “digital assets” may include virtual currencies, digital securities, and digital consumer assets. In a more straightforward form, these means bitcoins and other cryptocurrencies out there in the market.
Wyoming legislature further expounded the definition of “virtual currencies” as:
(A) A digital asset that has a monetary value, which can be used as a medium of exchange, a unit of account, or store of value.
(B) Not recognized as legal tender by the United States government.
These provide companies in the insurance market, as well as insurers, to dance around using digital consumer assets and use them as sort of an investment. Since these digital assets are now tagged as usable for consumptive, personal, or household purposes.
Lawyers and business analysts around the country now await on the potential outcome of the bill. Since this is the first amendment of its kind, we might see huge changes in the coming future, especially in the realm of investments and insurance companies.
Most insurance companies are known to be conservative when it comes to their investments and we would have to keep our eyes on them on how they would react and if they would take advantage of the situation. This is crucial for them since these companies are mostly interested in high-grade bonds and mortgages instead of a new market.
Insurers have mixed reactions about the move, but the majority are quite ecstatic about the move of the state legislature. If we all backtrack a bit, the state of Wyoming is one of the friendlier states when it comes to open blockchains and cryptocurrencies.
They also passed a couple of bills that solidified the status of cryptocurrency with real-life value, the same as money. This is a win-win situation for both sides since the state can provide workaround tax treatments that encompass cryptocurrencies such as Bitcoins and others. On the other hand, people will have more choices when dealing with insurance companies.
The CEO of the upcoming crypto bank Avanti, Caitlin Long anticipates that most insurers might offer the new case as part of variable life policies more than whole life policies.
Now that the stage is set, what does the future hold for insurance companies, insurers, and the overall cryptocurrency markets? All hand on deck and we now await on how the landscape changes on July 1st.
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