In the first provision of its kind, Wyoming is allowing the domestic insurers to invest in digital assets, starting July 1, 2020.
Wyoming is not new to taking positive steps in the direction of the cryptocurrency sector. Back in February, the state passed a bill that gave direct property rights to crypto holders. Last year, the state also unveiled a series of rules for crypto custodians dubbed as “blockchain banks” covering the likes of staking, airdrops, and forks.
The nation’s last-populous state has actually enacted over 13 laws to welcome crypto and blockchain companies.
Now, Wyoming has amended its insurance code to make it possible for the insurance firms to invest in Bitcoin and other cryptocurrencies.
“YES! Insurance cos in Wyoming will be able to invest in bitcoin & crypto as of 7/1/2020 (this was recently signed into law by Governor Gordon). Most likely insurers will offer this as part of variable life policies rather than whole life, since NAIC capital charge will be high,” said Caitlin Long, a Wall Street Veteran.
A crypto enthusiast, Long is also the founder and CEO of Avanti, the first bank dedicated to digital assets which she is planning to launch in Wyoming.
As per the Wyoming law, digital assets are defined as “a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency.”
As per the new provision, those “digital consumer assets” which are used or bought primarily for the purpose of personal, household or consumption including “open blockchain token constituting intangible personal property,” for instance utility tokens, are excluded by Wyoming to be used for investment by insurance companies.
